Question

Scooters India Ltd' is registered with an authorized capital of Rs 50,00,000, divided into 5,00,000 shares of Rs 10 each. The company issued 1, 00,000 shares for subscriptions to the public at par. The amount was payable as follows :

On application and allotment - Rs 3 per share
On 1st call - Rs 2 per share
On 2nd and final call - Rs 5 per share

The issue was fully subscribed. All calls were made and were duly received except 2nd and the final call on 1,000 shares held by Rohan. His shares were forfeited and afterwards re-issued at Rs 8 per share as fully paid up. Present 'Share Capital' in the Balance Sheet of the company as per Schedule VI of the Companies Act, 1956. Also, prepare Notes to accounts for the same.

Answer 1

India Auto Ltd Balance Sheet
Particulars	Note No	Rs
I. Equity and Liabilities   1. Shareholder’s Funds     a. Share Capital		2,49,97,000
Total		2,49,97,000
II. Assets   1.Non - Current Assets     a. Fixed Assets   2. Current Assets      a. Cash and Cash Equivalents		50,00,000 1,99,97,000
Total		2,49,97,000

 

Note No	Particulars	Rs
1	Share Capital Authorised Share Capital       7,00,000 shares of Rs 100 Issued Share Capital     2,50,000 shares of Rs 100 Subscribed Called-up and Paid up Share Capital     2,49,900 shares of Rs 100                                   2,49,90,00          Add: Shares Forfeited (100 shares of Rs 70)        7,000	2,49,97,000
2	Fixed Assets Building	50,00,000
3	Cash and Cash Equivalents       Cash at Bank	1,99,97,000