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Question
Madhur Ltd. has authorised capital of ₹ 80,00,000 divided into 8,00,000 equity shares of ₹ 10 each. Madhur Ltd. allotted 10,000 equity shares of ₹ 10 each as fully paid to the signatories of the Memorandum of Association and 5,000 equity shares of ₹ 10 each as fully paid to the vendor against the purchase of furniture and offered 5,00,000 equity shares of ₹ 10 each. It was decided to call ₹ 2 per share at the time of company's winding-up. Balance amount was called-up. The issue was fully subscribed. All money were duly received with the following exceptions.
Rajesh, who holds 4,000 shares has not paid any amount after application money (₹ 2 per share).
Mahesh, who holds 600 shares, has paid only ₹ 6 per share.
Sanjay, who holds 400 shares, has paid only ₹ 6 per share.
4,000 shares held by Rajesh were forfeited.
Present the share capital in the Balance Sheet of Madhur Ltd.
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Solution
| Extract of Balance Sheet of Madhur Ltd. | ||
|---|---|---|
| Particulars | Note No. | ₹ |
| I. EQUITY AND LIABILITIES | ||
| Shareholders’ Funds | ||
| Share Capital | 1 | 41,24,000 |
| Note to Accounts | |
|---|---|
| Particulars | ₹ |
| Authorised Capital | |
| 8,00,000 Equity Shares of ₹ 10 each | 80,00,000 |
| Issued Capital | |
| 5,15,000 Equity Shares of ₹ 10 each | 51,50,000 |
| Subscribed Capital | |
| Subscribed and Fully Paid-up | |
| 15,000 Equity Shares of ₹ 10 each | 1,50,000 |
| (Allotted as fully paid-up pursuant to a contract without payment being received in cash) | |
| Subscribed but not Fully Paid-up | |
| 4,96,000 Equity Shares of ₹ 10 each, ₹ 8 per share called-up | 39,68,000 |
| Less: Calls-in-Arrears (1,000 × ₹ 2) | 2,000 |
| 39,66,000 | |
| Forfeited Shares A/c (4,000 × ₹ 2) | 8,000 |
| Total | 41,24,000 |
Note: Reserve Capital is ₹ 2 per share, totalling to ₹ 9,92,000.
