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Question
The authorised capital of Sarang Ltd.is ₹ 1,20,00,000 divided into 12,00,000 shares of ₹ 10 each. Out of these, company issued 8,00,000 shares of ₹ 10 each at a premium of 20%. The amount per share was payable as follows:
| On Application | ₹ 2 |
| On Allotment | ₹ 6 (including premium) |
| On First Call | ₹ 2 |
| On Final Call | Balance |
Public applied for 7,80,000 shares. All the money was duly received.
Prepare an extract of Balance Sheet of Sarang Ltd. as per Schedule III, Part I of the Companies Act, 2013, disclosing the above information. Also prepare 'Notes to Accounts' for the same.
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Solution
| Balance Sheet of Sarang Ltd. | ||
|---|---|---|
| Particulars | Note No. | ₹ |
| EQUITY AND LIABILITIES | ||
| Shareholders' Funds | ||
| Share Capital | 1 | 78,00,000 |
| Reserves and Surplus: Securities Premium | 15,60,000 | |
| Total | 93,60,000 | |
| Notes to Accounts | |
|---|---|
| Particulars | ₹ |
| Note 1: Share Capital | |
| Authorised Capital: | |
| 12,00,000 Equity Shares of ₹ 10 each | 1,20,00,000 |
| Issued Capital: | |
| 8,00,000 Equity Shares of ₹ 10 each | 80,00,000 |
| Subscribed and Fully Paid-up Capital: | |
| 7,80,000 Equity Shares of ₹ 10 each | 78,00,000 |
Working Note:
Face value per share: ₹ 10
Premium: 20% of ₹ 10 = ₹ 2 per share
Shares subscribed: 7,80,000 shares
Amount payable per share:
On Application: ₹ 2
On Allotment: ₹ 6, including premium ₹ 2
On First Call: ₹ 2
On Final Call: Balance
Final Call:
₹ 12 − (₹ 2 + ₹ 6 + ₹ 2) = ₹ 2
Since all money was duly received, the shares are fully paid-up.
Share Capital:
7,80,000 × ₹ 10 = ₹ 78,00,000
Securities Premium:
7,80,000 × ₹ 2 = ₹ 15,60,000
