On 1st April, 2012; Vivek Ltd. Was Formed with an Authorized Capital of Rs.1,00,00,000 Divided into 2,00,000 Equity Shares of Rs.50 Each. the Company Issued Prospectus Inviting Applications for 1,80,000 Shares. the Issue Price Was Payable as Under - Accountancy

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On 1st April, 2012; Vivek Ltd. Was formed with an authorized capital of Rs.1,00,00,000 divided into 2,00,000 equity shares of Rs.50 each. The company issued prospectus inviting applications for 1,80,000 shares. The issue price was payable as under:

On Application: Rs.15

On Allotment: Rs.20

On Call: Balance amount

The issue was fully subscribed and the company allotted shares to all the applicants. The company did not make the call during the year.

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.

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Solution

                                                                                 Journal

Date Particulars L.F. Debit(Rs.) Credit(Rs.)
 

Bank A/c                                                                                                            Dr

           To Share Application A/c

(Being application for 1,80,000 share received @ 15 per share)

 

Share Application A/c                                                                                          Dr

           To share capital A/c

(Being share application money transferred to share capital)

 

Share Allotment A/c                                                                                            Dr

           To Share Capital A/c

(Being share allotment money due on 1,80,000 share @ 20 each)

 

27,00,000

 

 

 

27,00,000

 

 

 

36,00,000

 

 

 

27,00,000

 

 

 

27,00,000

 

 

 

36,00,000

 

 

                                           Balance Sheet

Particulars Note No. Amount(Rs.)

I. Equity and Liabilities

    1. Shareholder's fund

          a. Share capital

 

 

1

 

 

63,00,000

    63,00,000

 

Note to Accounts

Note No. Particulars Amount(Rs.)

1

 

 

 

 

 

 

 

 

Share Capital

2,00,000 share of Rs.50 each

 

Issued Capital

1,80,000 share of Rs.50 each

 

Subscribed Capital

1,80,000 share of Rs.50 each

 

 

 

1,00,00,000

 

 

90,00,000

 

 

90,00,000

 

 

Called and paid –up capital

1,80,000 share of Rs.35 each

 

63,00,000

Concept: Accounting for Share Capital
  Is there an error in this question or solution?
2013-2014 (March) Delhi Set 1

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Following is the Balance Sheet of J.M. Ltd. as at 31.3.2016:   

                         J.M. Ltd. Balance Sheet as at 31.3.2016

                Particulars

NoteNo.

31.03.2016

(Rs)

31.03.2015

(Rs)

I. Equity and Liabilities :

(1) Shareholder's Funds:

     

(a) Share Capital

 

2,25,000

1,75,000

(b) Reserves and Surplus

1

62,500

25,000

       

(2) Non-current Liabilities:

     

Long-Term Borrowings

2

1,12,500

87,500

       

(3) Current Liabilities:

     

(a) Short-term Borrowings

3

37,500

18,750

(b) Short-term Provisions

4

50,000

31,250

Total

  4,87,500

3,37,500

II. Assets:

     

(1) Non-current Assets:

     

(a) Fixed Assets:

     

(i) Tangible

5

3,66,250

2,28,750

(ii) Intangible

6

25,000

37,500

       

(b) Non-current Investments

 

37,500

25,000

       

(2) Current Assets:

     

(a) Current Investments

 

10,000

17,500

(b) Inventories

7

30,500

18,000

(c) Cash and Cash Equivalents

 

18,250

10,750

Total

 

4,87,500

3,37,500

 

            Notes to Accounts :

 

Note

No.

                          Particulars

31.03.2016

(Rs)

31.03.2015

(Rs)

(1)

Reserves and Surplus

 

 

 

(Surplus i.e. Balance in the Statement of Profit and Loss)

62,500 25,000

 

 

62,500 25,000

 

 

 

 

(2)

Long-term Borrowings

 

 

 

12% Debentures

1,12,500

87,500

 

 

1,12,500

87,500

 

 

 

 

(3)

Short-term Borrowings

 

 

 

Bank overdraft

37,500 18,750

 

 

37,500 18,750

 

 

 

 

(4)

Short-term Provisions

 

 

 

Proposed Dividend

50,000 31,250

 

 

50,000 31,250

 

 

 

 

(5)

Tangible Assets

 

 

 

Machinery

4,18,750 2,63,750

 

Accumulated Depreciation

(52,500) (35,000)

 

 

3,66,250 2,28,750

 

 

 

 

(6)

Intangible Assets

 

 

 

Goodwill

25,000 37,500

 

 

25,000

37,500

 

 

 

 

(7)

Inventories

 

 

 

Stock in Trade

30,500 18,000

 

 

30,500 18,000

 

 

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