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David Ltd. Issued 40, 00,000 Equity Shares of Rs 10 Each Out of Its Registered Capital of Rs 10,00,00,000. the Amount Payable on These Shares Was as Follows : - Accountancy

Question

'David Ltd.' issued `40, 00,000 equity shares of Rs 10 each out of its registered capital of Rs 10,00,00,000. The amount payable on these shares was as follows :

On application - Rs 1 per share
On allotment - Rs 2 per share
On the first call - Rs 3 per share
On second and final call - Rs 4 per share

All calls were made and were duly received, except the second and final call on 1,000 shares held by Vipul. These shares were forfeited.
Present the 'Share Capital' in the Balance Sheet of the company as per Schedule VI Part I of the Companies Act, 1956. Also, prepare 'Notes to Accounts'.

Solution

David Ltd.
Balance Sheet
Particulars Note
No
Rs

I. Equity and Liabilities

   1. Shareholder’s Funds

    a. Share Capital

    b. Reserve and Surplus

 

 

1

2

 

 

39,96,000

 

Total   39,96,000

II. Assets

   2. Current Assets

    a. Cash and Cash Equivalents

 

 

3

 

 

39,96,000

Total

 

39,96,000

NOTES TO ACCOUNTS

Note N Particulars Rs

1

 

 

 

 

 

 

Share Capital
Authorised Share Capital

    1,00,000 shares of Rs 10

Issued Share Capital

  40, 00,000 shares of  Rs 10

Subscribed Called-up and Paid-up Share Capital

    3,99,000 shares of Rs 10                                  39,90,000

   Add: Shares Forfeited (1,000 shares of Rs 6)             6,000

 

10,00,00,000

 

40,000

 

 

39,96,000

2

 

Reserve and Surplus

Securities Premium

 

 

3

 

Cash and Cash Equivalents

Cash at Bank

 

39,96,000

  Is there an error in this question or solution?
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David Ltd. Issued 40, 00,000 Equity Shares of Rs 10 Each Out of Its Registered Capital of Rs 10,00,00,000. the Amount Payable on These Shares Was as Follows : Concept: Accounting for Share Capital.
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