12th | Ts grewal 2021-2022 | Question 1 to 5 | Ch: 1 Company Account: Accounting for share capital

Page No 9.111:


Question 1:

Apollo Ltd. was registered with an authorised capital of  ` 50,00,000 divided into Equity Shares of  `  100 each . The company offered for public subscription all the shares . Public applied for 45,000 shares and allotment was made to all the applicants. All the calls were made and were duly received except the final call of  `  20 per share on 500 shares.
Prepare the Balance Sheet of the company showing the different types of share capital.


Answer:


Apollo Ltd.

Balance Sheet

Particulars

Note No.

Amount

( `)

I.  Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

44,99,000

2. Non-Current Liabilities

 

 

3. Current Liabilities

 

 

Total

 

44,99,000

 

 

 

II.  Assets

 

 

1. Non-Current Assets

 

 

2. Current Assets

 

 

a. Cash and Cash Equivalents

2

44,99,000

Total

 

44,99,000

 

 

 

NOTES TO ACCOUNTS

 

Note No.

Particulars

Amount

( `)

1

Share Capital

 

 

Authorised Share Capital

 

 

5,00,000 equity shares of  ` 10 each

50,00,000

 

Issued Share Capital

 

 

 5,00,000 equity shares of  ` 10 each

50,00,000

 

Subscribed, Called-up and Paid-up Share Capital

 

 

 4,50,000 equity shares of  ` 10 each

45,00,000

 

 

Less: Calls in Arrears (500 shares ×  ` 2)

  (1,000)

44,99,000

 

 

 

2

Cash and Cash Equivalents

 

 

Cash at Bank

44,99,000

 

 

 

 

Page No 9.111:


Question 2:


Madanlal Ltd has authorised share capital of  `  50,00,000 divided into 5,00,000 Equity Shares of  `  10 each . It has existing issued and paid up capital of  `  5,00,000. It further issued to public 1,50,000 Equity Shares at par for subscription payable as under:

 On Application:

     ` 3

 On Allotment:

     ` 4 and

 On Call:

   Balance Amount.


The issue was fully subscribed and allotment was made to all the applicants . Call was made during the year and was duly received.
Show share capital of the company in the Balance Sheet of the Company.


Answer:


Balance Sheet of  Madanlal Ltd.

Particulars

Note No.

Amount 

( `)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

20,00,000

Total

 

20,00,000

II. Assets

 

 

2. Current Assets

 

 

a.      Cash and Cash Equivalents

2

20,00,000

Total

 

20,00,000


 

Notes to Accounts

 

Particulars

Amount

( `)

1. Share Capital

 

Authorised Share Capital

 

5,00,000 Equity Shares of  ` 10 each

50,00,000

Issued Share Capital

 

50,000 Equity Shares of  ` 10 each

5,00,000

 

1,50,000 Equity Shares of  ` 10 each

15,00,000

20,00,000

Subscribed and Paid-up Share Capital

 

50,000 Equity Shares of  ` 10 each

5,00,000

 

1,50,000 Equity Shares of  ` 10 each

15,00,000

20,00,000

 

 

2. Cash and Cash Equivalents

 

Bank

20,00,000

 

 

 

Page No 9.111:


Question 3:


Fancy co. Ltd. has authorised share capital of  ` 1,00,00,000  divided into 1,00,000 Equity Shares of  `  100 each . It has existing issued and paid up capital of  `  25,00,000. It further issued to public 25,000 Equity Shares at a premium of 20% for subscription payable as under:

 On Application:

     ` 30

 On Allotment:

     ` 60 and

 On Call:

    Balance Amount.


The issue was fully subscribed and allotment was made to all the applicants . The company did not make the call during the year.
Show share capital of the company in the Balance Sheet of the Company.


Answer:


Balance Sheet of Fancy co. Ltd.

Particulars

Note No.

Amount 

( `)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

42,50,000

b. Reserves and Surplus

2

5,00,000

Total

 

47,50,000

II Assets

 

 

2. Current Assets

 

 

a.      Cash and Cash Equivalents

3

47,50,000

Total

 

47,50,000

 

Notes to Accounts

Particulars

Amount

( `)

1. Share Capital

 

Authorised Share Capital

 

1,00,000 Equity Shares of  ` 100 each

1,00,00,000

Issued Share Capital

 

25,000 Equity Shares of  ` 100 each

25,00,000

 

25,000 Equity Shares of  ` 100 each

25,00,000

50,00,000

Subscribed Share Capital

 

Fully Called-up & Paid-up Capital

 

25,000 Equity Shares of  ` 100 each

25,00,000

Partially Called-up & Paid-up Capital

 

25,000 Equity Shares of  ` 100 each, 70 called-up

17,50,000

 

 

2. Reserves and Surplus

 

Securities Premium Reserve
(25,000 shares @  ` 20 per share)

5,00,000

 

 

3. Cash and Cash Equivalents

 

Bank

47,50,000

 

 

 

Page No 9.112:


Question 4:


Star Ltd. is registered with capital of  ` 50,00,000 divided into 50,000 equity shares of  ` 100 each, The Company issued 25,000 equity shares for subscription. Subscription was received for 23,750 shares and all the due amount was duly received, except the first and final call of  ` 20 per share on 600 shares. Show the 'Share Capital' in the Balance Sheet of the company.


Answer:


In the books of Star Ltd.

An Extract of Balance Sheet

As at ……….

Particulars

Note No.

Amount
( `)

I. Equity And Liabilities Shareholders’ Funds

 

 

   Share Capital

1

23,63,000

 

 

 

 

Notes to Accounts:

Note No.

Particulars

 

Amount
( `)

1.

Share Capital

 

 

 

Authorised Capital

 

 

 

50,000 equity shares of  `100 each

 

50,00,000

 

 

 

 

 

Issued Capital

 

 

 

25,000 shares of  `100 each

 

25,00,000

 

 

 

 

 

Subscribed Capital

 

 

 

23,750 shares of  `100 each

23,75,000

 

 

  Less: Calls-in-Arrears (600 × 20)

12,000

23,63,000

 

 

 

23,63,000

 

 

 

 

 

Page No 9.112:


Question 5:


Dynamic company issued 2,50,000 Equity Shares of  ` 10 each to public. All amounts have been received in lump sum. Pass necessary Journal entries in the books of the company.

 


Answer:


Authorised Capital 2,50,000 equity shares of  ` 10 each

Issued and Subscribed Capital 2,50,000 shares

In the books of Dynamic
Journal

Date

Particulars

L.F.

Debit

Amount

( `)

Credit

Amount

( `)

 

 

 

 

 

 

Bank A/c

Dr.

 

25,00,000

 

 

To Equity Share Application A/c

 

 

25,00,000

 

(Share application money received for 2,50,000 equity shares of  ` 10 each)

 

 

 

 

 

 

 

 

 

Equity Share Application A/c

Dr.

 

25,00,000

 

 

To Equity Share Capital A/c

 

 

25,00,000

 

(Share application of 2,50,000 equity shares of  ` 10 each transferred to Equity Share Capital Account )