Question

Parth Company Limited was registered with an authorised capital of ₹ 30,00,000 divided into 3,00,000 equity shares of ₹ 10 each. Company issued 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. Company received applications for 1,60,000 equity shares and were allotted the shares.
Company received application money ₹ 3 per share, allotment money ₹ 4 per share (including premium) and first call money ₹ 3 per share.
The Directors have not made final call of ₹ 2 per share. All money were received except one shareholder holding 1,000 shares did not pay the first call.
Show Authorised capital, Issued capital, Subscribed capital, Called-up capital, Paid-up capital, Calls-in-Arrears and Share Premium amount in company Balance Sheet.

Answer 1

In the books of Parth Company Limited Balance Sheet as on ______
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Authorised Capital:			Cash at Bank		15,97,000
3,00,000 equity shares of ₹ 10 each		30,00,000
Issued Capital:
2,00,000 equity shares of ₹ 10 each		20,00,000
Subscribed Capital:
1,60,000 equity shares of ₹ 10 each		16,00,000
Called-up Capital:
1,60,000 equity shares of ₹ 8 each		12,80,000
Paid-up Share Capital: (1,60,000 equity shares at ₹ 8 per share)	12,80,000	12,77,000
Less: Calls-in-Arrears (1,000 shares at ₹ 3 per share)	3,000
Share Premium/Securities A/c (1,60,000 shares at ` 2 per share)		3,20,000
		15,97,000			15,97,000

Working Notes:

(1) Bank balance at the end = Amount received on application + Amount received on allotment + Amount received on first call + Premium amount received

= 1,60,000 × 3 + 1,60,000 × 2 × 1,59,000 × 3 + 1,60,000 × 2

= 4,80,000 + 3,20,000 + 4,77,000 + 3,20,000 = ₹ 15,97,000

(2) Directors have not made final call of ₹ 2 per share means total called-up amount = ₹ 10 – ₹ 2 = ₹ 8

(3) Calls-in-Arrears → on 1,000 shares at ₹ 3 = ₹ 3,000 of first call

(4) Share premium on 1,60,000 shares @ ₹ 2 received at allotment stage i.e. share premium amount = 1,60,000 × ₹ 2 = ₹ 3,20,000.