Question

Happy Days Ltd. was formed with an authorised capital of ₹50,00,000 divided into 5,00,000 equity shares of ₹10 each. The company issued prospectus inviting applications for 4,00,000 equity shares. The company received applications for 3,70,000 equity shares. During the first year, ₹8 per share were called. Suman holding 7,000 shares and Zia holding 5,000 shares did not pay the first call of ₹3 per share. Zia's shares were forfeited after the first call and later on 3,000 of the forfeited shares were re-issued at ₹7 per share, ₹8 called up.

Subscribed and Fully Paid Capital will be ______.

Options

• ₹36,80,000

• ₹36,69,000

• ₹29,13,000

• NIL

Answer 1

Subscribed and Fully Paid Capital will be NIL.

Explanation:

• Subscribed Shares = 3,70,000 shares

• Called-up = ₹8 per share

• Zia’s 5,000 shares were forfeited after not paying ₹3 (first call)

• 3,000 of these forfeited shares were reissued at ₹7, ₹8 called-up

Reissued Shares

Only reissued shares are considered fully paid.
3,000 shares reissued at ₹8 called-up = ₹24,000

Remaining Shares Fully Paid

Total Subscribed = 3,70,000
Less: Suman (7,000) and Zia (5,000) = 12,000 not fully paid
Add: 3,000 reissued shares now fully paid
= Fully Paid Shares = 3,70,000 – 12,000 + 3,000 
= 3,61,000

Multiply by ₹8 (called-up and paid)

3,61,000 × ₹8

= ₹28,88,000

None of the given options match this directly.