Question

Excel Ltd. was registered with capital of ₹ 5,00,000 divided into 50,000 Equity Shares of ₹ 10 each. It issued 20,000 Equity Shares to public for subscription. The shares were subscribed and calls were made and received except first and final call of ₹ 2 on 500 shares held by Varun.

Prepare Balance Sheet of the company showing Share Capital.

Answer 1

Balance Sheet
Particulars	Note No.	₹
EQUITY AND LIABILITIES
Shareholders' Funds
Share Capital	1	1,99,000

 

Notes to Accounts
Particulars	₹
Note 1: Share Capital
Authorised Capital:
50,000 Equity Shares of ₹ 10 each	5,00,000
Issued Capital:
20,000 Equity Shares of ₹ 10 each	2,00,000
Subscribed and Fully Paid-up Capital:
19,500 Equity Shares of ₹ 10 each	1,95,000
Subscribed but Not Fully Paid-up Capital:
500 Equity Shares of ₹ 10 each	5,000
Less: Calls-in-Arrears (500 × ₹ 2)	(1,000)
	4,000
Total Share Capital	1,99,000

Working note:

Face value per share: ₹ 10

Shares issued and subscribed: 20,000 shares

First and Final Call unpaid on 500 shares:

500 × ₹ 2 = ₹ 1,000

Therefore, Calls-in-Arrears = ₹ 1,000

Fully paid-up shares:

20,000 − 500 = 19,500 shares

Subscribed and Fully Paid-up Capital:

19,500 × ₹ 10 = ₹ 1,95,000​

Subscribed but Not Fully Paid-up Capital:

500 × ₹ 10 = ₹ 5,000

Less: Calls-in-Arrears:

₹ 5,000 − ₹ 1,000 = ₹ 4,000​

Total Share Capital:

₹ 1,95,000 + ₹ 4,000 = ₹ 1,99,000​