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 but not Fully Paid Capital will be ______.

Options

• ₹29,44,000

• ₹29,33,000

• ₹29,23,000

• ₹36,69,000

Answer 1

Subscribed but not Fully Paid Capital will be ₹29,23,000.

Explanation:

Subscribed shares = 3,70,000

Net Subscribed Shares =

3,70,000 – 5,000 (forfeited) + 3,000 (reissued)

= 3,68,000

Fully paid (₹8 received):

3,68,000 – 7,000 (Suman’s unpaid) = 3,61,000 shares × ₹8 = ₹28,88,000

Suman’s 7,000 shares partially paid (₹5 paid)

7,000 × ₹5 = ₹35,000

Subscribed but not Fully Paid Capital:

= ₹28,88,000 (fully paid) + ₹35,000 (partially paid)

= ₹29,23,000