Question

Bharat Hotels Ltd. had authorised capital of ₹ 50,00,000 divided into 50,000 Equity Shares of ₹ 100 each. It issued 10,000 Equity Shares to public for subscription on the following terms:

On Application	₹ 40 per share
On Allotment	₹ 30 per share

Balance on First and Final call.

Shares were fully subscribed and amounts called were duly received. First and Final call was not yet made. Prepare Balance Sheet of the company showing Share Capital.

Answer 1

Balance Sheet Extract
Particulars	Note No.	₹
EQUITY AND LIABILITIES
Shareholders' Funds
Share Capital	1	7,00,000

 

Notes to Accounts
Particulars	₹
Note 1: Share Capital
Authorised Capital:
50,000 Equity Shares of ₹ 100 each	50,00,000
Issued Capital:
10,000 Equity Shares of ₹ 100 each	10,00,000
Subscribed but Not Fully Paid-up Capital:
10,000 Equity Shares of ₹ 100 each, ₹ 70 called-up	7,00,000
Total Share Capital	7,00,000

Working note:

Face value per share: ₹ 100

Amount called-up:

₹ 40 + ₹ 30 = ₹ 70 per share

First and Final Call:

₹ 100 − ₹ 70 = ₹ 30 per share

Since the First and Final Call was not yet made, only ₹ 70 per share is called-up.

Subscribed capital:

10,000 × ₹ 70 = ₹ 7,00,000