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Question
Ganges Ltd. was registered with an authorised capital of ₹ 7,00,000 divided into equity shares of ₹ 10 each. It offered to public for subscription 50,000 equity shares. The amount was payable as follows:
On application : ₹ 4 per share
On allotment : ₹ 4 per share
On first and final call : Balance
The issue was fully subscribed. All the amounts were duly received except the first and final call money on 4,000 equity shares.
Show the Share Capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare 'Notes to Accounts' for the same.
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Solution
| Balance Sheet Extract | ||
|---|---|---|
| Particulars | Note No. | ₹ |
| EQUITY AND LIABILITIES | ||
| Shareholders' Funds | ||
| Share Capital | 1 | 4,92,000 |
| Notes to Accounts | |
|---|---|
| Particulars | ₹ |
| Authorised Capital: | |
| 70,000 Equity Shares of ₹ 10 each | 7,00,000 |
| Issued Capital: | |
| 50,000 Equity Shares of ₹ 10 each | 5,00,000 |
| Subscribed Capital: | |
| Subscribed and fully paid-up: 46,000 Equity Shares of ₹ 10 each | 4,60,000 |
| Subscribed but not fully paid-up: 4,000 Equity Shares of ₹ 10 each | 40,000 |
| Less: Calls-in-Arrears (4,000 × ₹ 2) | (8,000) |
| Total Share Capital | 4,92,000 |
Working note:
Face value per share: ₹ 10
Amount payable:
On Application: ₹ 4 per share
On Allotment: ₹ 4 per share
On First and Final Call:
₹ 10 − (₹ 4 + ₹ 4) = ₹ 2 per share
First and final call was not received on 4,000 shares:
4,000 × ₹ 2 = ₹ 8,000
Therefore, Calls-in-Arrears = ₹8,000
