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'India Auto Ltd.' is Registered with an Authorised Capital of Rs 7,00,00,000 Divided into 7,00,000 Shares Rs 100 Each. the Company Issued 50,000 Shares to the Vendor for Building Purchased and 2,00,000 Shares Were Issued to the Public. the Amount Was Payable as Follows - Accountancy

'India Auto Ltd.' is registered with an authorised capital of Rs 7,00,00,000 divided into 7,00,000 shares Rs 100 each. The company issued 50,000 shares to the vendor for building purchased and 2,00,000 shares were issued to the public. The amount was payable as follows :

On application and allotment — Rs 20 per share
On the first call — Rs 50 per share
On second and final call — The balance

All calls were made and were duly received except on 100 shares held by Rajani, who failed to pay the second and final call. Her shares were forfeited.
Present the 'Share Capital' in the Balance Sheet of the company as per Schedule VI Part I of the
Companies Act, 1956. Also, prepare 'Notes to Accounts'.

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Solution

India Auto Ltd
Balance Sheet
Particulars Note
No
Rs

I. Equity and Liabilities

  1. Shareholder’s Funds

    a. Share Capital

 

 

1

 

 

2,49,97,000

Total   2,49,97,000

II. Assets

  1.Non - Current Assets

     a. Fixed Assets

   2. Current Assets

    a. Cash and Cash Equivalents 3

 

 

2

 

3

 

 

50,00,000

 

1,99,97,000

Total   2,49,97,000

 

Note No Particulars Rs

1

 

 

 

 

 

 

Share Capital

Authorised Share Capital

     7,00,000 shares of Rs 100

Issued Share Capital

    2,50,000 shares of Rs 100

Subscribed Called-up and Paid up Share Capital

    2,49,900 shares of Rs 100                              2,49,90,000

   Add: Shares Forfeited (100 shares of Rs 70)               7,000

 

 

7,00,00,000

 

2,50,00,000

 

 

2,49,97,000

2

 

Fixed Assets

Building

 

50,00,000

3

 

Cash and Cash Equivalents

Cash at Bank

 

1,99,97,000

  Is there an error in this question or solution?
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