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On 1st April, 2012; Vivek Ltd. Was Formed with an Authorized Capital of Rs.1,00,00,000 Divided into 2,00,000 Equity Shares of Rs.50 Each. the Company Issued Prospectus Inviting Applications for 1,80,000 Shares. the Issue Price Was Payable as Under - CBSE (Arts) Class 12 - Accountancy

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Question

On 1st April, 2012; Vivek Ltd. Was formed with an authorized capital of Rs.1,00,00,000 divided into 2,00,000 equity shares of Rs.50 each. The company issued prospectus inviting applications for 1,80,000 shares. The issue price was payable as under:

On Application: Rs.15

On Allotment: Rs.20

On Call: Balance amount

The issue was fully subscribed and the company allotted shares to all the applicants. The company did not make the call during the year.

Show the following:

a. Share capital in the Balance Sheet of the company as per revised Schedule-VI, Part-I of the Companies Act, 1956.

b. Also prepare 'Notes to Accounts' for the same.

Solution

                                                                                 Journal

Date Particulars L.F. Debit(Rs.) Credit(Rs.)
 

Bank A/c                                                                                                            Dr

           To Share Application A/c

(Being application for 1,80,000 share received @ 15 per share)

 

Share Application A/c                                                                                          Dr

           To share capital A/c

(Being share application money transferred to share capital)

 

Share Allotment A/c                                                                                            Dr

           To Share Capital A/c

(Being share allotment money due on 1,80,000 share @ 20 each)

 

27,00,000

 

 

 

27,00,000

 

 

 

36,00,000

 

 

 

27,00,000

 

 

 

27,00,000

 

 

 

36,00,000

 

 

                                           Balance Sheet

Particulars Note No. Amount(Rs.)

I. Equity and Liabilities

    1. Shareholder's fund

          a. Share capital

 

 

1

 

 

63,00,000

    63,00,000

 

Note to Accounts

Note No. Particulars Amount(Rs.)

1

 

 

 

 

 

 

 

 

Share Capital

2,00,000 share of Rs.50 each

 

Issued Capital

1,80,000 share of Rs.50 each

 

Subscribed Capital

1,80,000 share of Rs.50 each

 

 

 

1,00,00,000

 

 

90,00,000

 

 

90,00,000

 

 

Called and paid –up capital

1,80,000 share of Rs.35 each

 

63,00,000

  Is there an error in this question or solution?

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Solution On 1st April, 2012; Vivek Ltd. Was Formed with an Authorized Capital of Rs.1,00,00,000 Divided into 2,00,000 Equity Shares of Rs.50 Each. the Company Issued Prospectus Inviting Applications for 1,80,000 Shares. the Issue Price Was Payable as Under Concept: Accounting for Share Capital.
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