Question

East India Hotels Ltd. was registered with authorised capital of ₹ 25,00,000 divided into 2,50,000 Equity Shares of ₹ 10 each. It issued 1,50,000 Equity Shares to public for subscription. The shares were subscribed and calls were made and received. First and final call of ₹ 3 was not made. Paresh holder of 5,000 shares paid the call money along with the allotment money.

Prepare Balance Sheet of the company showing Share Capital.

Answer 1

Balance Sheet
Particulars	Note No.	₹
EQUITY AND LIABILITIES
Shareholders' Funds
Share Capital	1	10,50,000
Current Liabilities
Calls-in-Advance		15,000

 

Notes to Accounts
Particulars	₹
Note 1: Share Capital
Authorised Capital:
2,50,000 Equity Shares of ₹ 10 each	25,00,000
Issued Capital:
1,50,000 Equity Shares of ₹ 10 each	15,00,000
Subscribed but Not Fully Paid-up Capital:
1,50,000 Equity Shares of ₹ 10 each, ₹ 7 called-up	10,50,000

Working note:

Face value per share: ₹ 10

First and Final Call not made: ₹ 3 per share

Therefore, amount called-up per share:

₹ 10 − ₹ 3 = ₹ 7

Shares subscribed: 1,50,000 shares

Subscribed but Not Fully Paid-up Capital:

1,50,000 × ₹ 7 = ₹ 10,50,000

Paresh paid the uncalled amount in advance on 5,000 shares:

5,000 × ₹ 3 = ₹ 15,000​