Question

On 1st April 2012, Vishwas Ltd. was formed with an authorised capital of Rs 10,00,000 divided into 1,00,000 equity shares of Rs 10 each. The company issued the prospectus inviting applications for 90,000 equity shares. The company received applications for 85,000 equity shares. During the first year, Rs 8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did not pay the first call of Rs 2 per share. Shyam's shares were forfeited after the first call and later on, 1,500 of the forfeited share were re-issued at Rs 6 per share, `8 called up.

Show the following:

a. Share Capital in the Balance Sheet of the company as per revised Schedule VI Part I of the Companies Act, 1956

b. Also, prepare 'Notes to Accounts' for the same.

Answer 1

Balance Sheet as at April 01, 2012
Particulars	Note No.	Rs
I. Equity and Liabilities   1. Shareholders’ fund    a. Share capital    b. Reserve and Surplus   2. Non-Current Liabilities   3. Current Liabilities		6,77,000 6,000
Total		6,83,000
II. Assets   1. Non-Current Assets   2. Current Assets     Cash and Cash Equivalents		6,83,000
Total		6,83,000

Note to Account

Note No.	Particular	Rs
1	Share capital 1,00,000 share of Rs 10 each Issued capital 90,000 equity share of  Rs 10 each Subscribed Called up and paid up Capital 84,500 equity share of Rs 8 each                                               6,67,000 Less: Calls-in- arrears (on 1,000 equity share @ Rs 2 per Share)      2,000 Add: Share forfeiture( on 500 equity share)                                     3,000	6,77,000
2	Reserve and Surplus Capital Reserve	6,000
3	Cash and Cash Equivalents Cash at Bank	6,83,000