Question 9:
East India Hotels Ltd. was registered with authorised capital of ₹25,00,000 divided into 2,50,000 Equíty Shares of ₹10 each. It issued 1,50,000 Equity Shares to public for subscription. The shares were subscribed and calls were made and received. First and final call of ₹3was not made. Paresh holder of 5,000 shares paid the call money along with the allotment money.
Prepare Balance Sheet of the company showing Share Capital.
Answer:
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Balance Sheet of East India |
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Particulars |
Note No. |
(₹) |
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I. Equity and Liabilities |
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1. Shareholders’ Funds |
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Share Capital |
1 |
10,50,000 |
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2. Current Liabilities Other Current Liabilities |
2 |
15,000 |
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Notes to Accounts |
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Particulars |
(₹) |
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1. Share Capital |
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Authorised Share Capital |
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2,50,000 Equity Shares of ₹10 each |
25,00,000 |
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25,00,000 |
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Issued Share Capital |
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1,50,000 Equity Shares of ₹10 each |
1,50,000 |
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1,50,000 |
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Subscribed Share Capital Subscribed and But not Fully Paid-up Share Capital |
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1,50,000 Equity Shares of 100 each (Called-up ₹7) |
10,50,000 |
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10,50,000 |
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Other Current Liabilities |
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2.Calls in Advance |
15,000 |
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Question 10:
Shuchi Ltd. was registered with a capital of ₹5,00,000 in shares of ₹10 each and issued 20,000 such shares at a premium of ₹2 per share, payable at ₹2 per share on application, ₹10 per share on allotment (including premium) and ₹2 per share on first call made three months later. All the money payable on application and allotment was duly received but when the first call was made, one shareholder paid the entire balance on his holding of 300 shares and another shareholder holding 1,000 shares failed to pay the first call money.
Pass Journal entries to record the above transactions and show how they will be shown in the company's Balance Sheet.
Answer:
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Balance Sheet of Shuchi Ltd. |
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Particulars |
Note No. |
(₹) |
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I. Equity and Liabilities |
|
|
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1. Shareholders’ Funds |
|
|
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Share Capital |
1 |
1,38,000 |
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Reserve and Surplus |
2 |
40,000 |
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2. Other Current Liabilities |
3 |
900 |
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Total |
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1,78,900 |
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Notes to Accounts |
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Particulars |
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(₹) |
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1. Share Capital |
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Authorised Share Capital |
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50,000 Equity Shares of ₹10 each |
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5,00,000 |
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5,00,000 |
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Issued Share Capital |
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20,000 Equity Shares of ₹10 each |
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2,00,000 |
|||
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2,00,000 |
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Subscribed Share Capital |
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Subscribed and Fully Paid-up Share Capital |
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19,000 Equity Shares of 10 each (Called-up ₹7) |
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1,33,000 |
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Subscribed and But not Fully Paid-up Share Capital |
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||||
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1,000 Equity Shares of 10 each (Called-up ₹7) |
7,000 |
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Less: Call-in-arrears 1,000×2 |
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(2,000) |
5,000 |
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1,38,000 |
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2. Reserve and Surplus |
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Securities Premium Reserve 20,000×2 |
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40,000 |
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40,000 |
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Other Current Liabilities |
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3.Calls in Advance (300×3) |
|
900 |
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Issue of Shares for Cash at Par
Question 11:
Nidhi Sales Ltd. issued 2,50,000 Equity Shares of 10 each to public at par for subscription, amount being payable as application money.
Pass necessary Journal entries in the books of the company.
Answer:
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In the books of Nidhi Sales Ltd. |
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Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
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Bank A/c |
Dr. |
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25,00,000 |
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To Equity Share Application A/c |
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25,00,000 |
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(Share application money received for 2,50,000 equity shares of ₹10 each) |
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Equity Share Application A/c |
Dr. |
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25,00,000 |
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To Equity Share Capital A/c |
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25,00,000 |
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(Share application of 2,50,000 equity shares of ₹10 each transferred to Equity Share Capital Account ) |
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Question 12:
The authorised capital of ₹16,00,000 of Soumya Ltd. is divide into 1,60,000 Equity Shares of ₹10 each. Out of these shares, 80,000 Equity Shares were issued at par to public for subscription. The full nominal value is payable on application. All the shares were subscribed by the public and total amount was paid for. Pass necessary journal entries in the books of the company.
Answer:
Authorised Capital 1,60,000 equity shares of ₹10 each
Issued and Subscribed Capital 80,000 equity shares
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Books of Soumya Limited Journal |
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Date |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
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Bank A/c |
Dr. |
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8,00,000 |
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To Equity Share Application A/c |
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8,00,000 |
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(Share application money received for 80,000 Equity Shares of ₹10 each) |
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Equity Share Application A/c |
Dr. |
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8,00,000 |
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To Equity Share Capital A/c |
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8,00,000 |
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(Share application of 80,000 shares of ₹10 each transferred to Equity Share Capital Accounts) |
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Ts Grewal Solution 2026-2027
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Class 12 / Volume – 2
Chapter 1- Company Accounts- Accounting for Share Capital
Question No. 1 To 4
Question No. 5 To 8
Question No. 9 To 12
Question No. 13 To 16
Question No. 17 To 20
Question No. 21 To 24
Question No. 25 To 28
Question No. 29 To 32
Question No. 33 To 36
Question No. 37 To 40
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