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Question
Sunstar Ltd. has an authorised capital of ₹ 20,00,000 divided into equity shares of ₹ 10 each. The company invited applications for issuing of 60,000 shares. Applications were received for 58,000 shares.
All calls were made and were duly received except the final call of ₹ 3 per share on 2,000 shares. These shares were forfeited.
Present the 'Share Capital' in the Balance Sheet of the Company as per Schedule III, Part I of the Companies Act, 2013. Also prepare 'Notes to Accounts' for the same.
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Solution
| Balance Sheet Extract | ||
|---|---|---|
| Particulars | Note No. | ₹ |
| EQUITY AND LIABILITIES | ||
| Shareholders' Funds | ||
| Share Capital | 1 | 5,74,000 |
| Notes to Accounts | |
|---|---|
| Particulars | ₹ |
| Authorised Capital: | |
| 2,00,000 Equity Shares of ₹ 10 each | 20,00,000 |
| Issued Capital: | |
| 60,000 Equity Shares of ₹ 10 each | 6,00,000 |
| Subscribed and Fully Paid-up Capital: | |
| 56,000 Equity Shares of ₹ 10 each | 5,60,000 |
| Add: Forfeited Shares (amount originally paid-up) | 14,000 |
| Total Share Capital | 5,74,000 |
Working Note:
Face value per share: ₹ 10
Applications received for:
58,000 shares
Final call unpaid on 2,000 shares:
2,000 × ₹ 3 = ₹ 6,000
These 2,000 shares were forfeited.
Amount received on each forfeited share:
₹ 10 − ₹ 3 = ₹ 7
Therefore, amount originally paid-up on forfeited shares:
2,000 × ₹ 7 = ₹ 14,000
Shares remaining after forfeiture:
58,000 − 2,000 = 56,000 shares
Subscribed and fully paid-up capital:
56,000 × ₹ 10 = ₹ 5,60,000
Add: Amount originally paid-up on forfeited shares:
₹ 14,000
Therefore:
₹ 5,60,000 + ₹ 14,000 = ₹ 5,74,000
