Question

Xylo Ltd. was formed on 1st April, 2018, with an authorized capital of ₹12,00,000 divided into equity shares of ₹10 each. It invited applications for 30,000 shares to be issued at par, in the year of its formation, all of which were subscribed for and the amount due on them fully received. On 1st April, 2020, the company issued another 60,000 shares at a premium of ₹2 per share to be received with allotment. It received applications for 55,000 shares which were duly allotted. All amounts due on the allotted shares was received except the final call of ₹2 per share on 1,000 shares. The company forfeited these shares and later reissued 800 of the forfeited shares @₹7 per share fully called up. The Balance Sheet of the company was prepared as at 31st March, 2021, as per Schedule III of the Companies Act, 2013.

The issued capital of the company to be shown in Notes to Accounts as at 31st March, 2021, under “Share Capital” will be ______.

Options

• ₹12,00,000

• ₹9,00,000

• ₹8,50,000

• ₹8,49,600

Answer 1

The issued capital of the company to be shown in Notes to Accounts as at 31st March, 2021, under “Share Capital” will be ₹9,00,000.

Explanation:

₹12,00,000 divided into equity shares of ₹10 each

= 1,20,000 shares

Issued Capital:

Issued = 30,000 shares @ ₹10

Capital = 30,000 × ₹10 = ₹3,00,000

Issued = 60,000 shares @ ₹10

Capital = 60,000 × ₹10 = ₹6,00,000

= ₹3,00,000 + ₹6,00,000

= ₹9,00,000