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Question
Jiva Ltd. is registered with capital of ₹ 50,00,000 divided into 50,000 equity shares of ₹ 100 each. The Company issued 25,000 equity shares for subscription. Subscription was received for 23,750 shares and all the due amount was duly received, except the first and final call of ₹ 20 per share on 600 shares. Show the 'Share Capital' in the Balance Sheet of the company.
Note: Problems related to Disclosure of Share Capital in company's Balance Sheet are also given under the head issue of shares at par and at premium.
Ledger
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Solution
| Balance Sheet Extract | ||
|---|---|---|
| Particulars | Note No. | ₹ |
| EQUITY AND LIABILITIES | ||
| Shareholders' Funds | ||
| Share Capital | 1 | 23,63,000 |
| Notes to Accounts | |
|---|---|
| Note 1: Share Capital | |
| Particulars | ₹ |
| Authorised Capital: | |
| 50,000 Equity Shares of ₹ 100 each | 50,00,000 |
| Issued Capital: | |
| 25,000 Equity Shares of ₹ 100 each | 25,00,000 |
| Subscribed Capital: | |
| 23,750 Equity Shares of ₹ 100 each | 23,75,000 |
| Less: Calls-in-Arrears (600 × ₹ 20) | (12,000) |
| Total Share Capital | 23,63,000 |
Working note:
Face value per share: ₹ 100
Shares subscribed: 23,750 shares
23,750 × ₹ 100 = ₹ 23,75,000
First and final call unpaid on 600 shares:
600 × ₹ 20 = ₹ 12,000
Therefore:
₹ 23,75,000 − ₹ 12,000 = ₹ 23,63,000
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