Question

Vijay Ltd. was registered with an authorised capital of ₹ 15,00,000 divided into 1,50,000 equity shares of ₹ 10 each.

Company issued 1,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share.

Company received applications for 80,000 equity shares and were allotted the shares.

Company received application money ₹ 3 per share, allotment money ₹ 4 per share (Including premium), and first call money ₹ 3 per share.

The Directors have not made final call of ₹ 2 per share. All money were received except one shareholder holding 500 shares did not pay first call.

Show Authorised Capital, Issued Capital, Subscribed Capital, Called-up Capital, Paid-up Capital, Calls in Arrears, and Share Premium amount in company balance sheet.

Answer 1

In the books of Vijay Ltd.

Balance Sheet as on ______
Liabilities		Amount (₹)	Assets	Amount (₹)
Authorised Capital:			Cash at Bank	7,98,500
1,50,000 equity shares of ₹ 10 each		15,00,000
Issued Capital:
1,00,000 equity shares of ₹ 10 each		10,00,000
Subscribed Capital:
80,000 equity shares of ₹ 10 each		8,00,000
Called-up Capital:
80,000 equity shares of ₹ 8 each		6,40,000
Paid-up Share Capital:
(80,000 equity shares at 8 per shares)	6,40,000
Less: Calls-in-Arrears (500 shares at ₹ 3 per share)	1,500	6,38,500
Share Premium / Securities A/c (80,000 shares at ₹ 2 per share)		1,60,000
		7,98,500		7,98,500

Working Notes :

(1) Bank balance at the end = Amount received on application + Amount received on allotment + Amount received on 1st call + Premium amount received

= 80,000 × 3 + 80,000  × 2 + 79,500 × 3 + 80,000 × 2

= 2,40,000 + 1,60,000 + 2,38,500 + 1,60,000

= ₹ 7,98,500

(2) Directors have not made final call of ₹ 2 per share means total called-up amount = ₹ 10 – ₹ 2 = ₹ 8

(3) Calls-in-Arrears on 500 shares at ₹ 3 = ₹ 1,500 of first call

(4) Share premium on 80,000 shares @ ₹ 2 received at allotment stage i.e. share premium amount = 80,000 × ₹ 2 = ₹ 1,60,000.