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12th | Company Accounts- Accounting for Share Capital | Question No.  1 To 4 | Ts Grewal Solution 2022-2023

Question 1:


Hi-tech 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:


Hi-tech Ltd.

Balance Sheet

Particulars

Note No.

 ( `)

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

 ( `)

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

 

 

 

 

Question 2:


Farm Products 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  Farm Products Ltd 

Particulars

Note No.

 ( `)

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

 ( `)

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

 

 

 

Question 3:


Global Trade 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.

 ( `)

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

 ( `)

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

 

 

 

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.


(
`)

I. Equity And Liabilities Shareholders’ Funds

 

 

   Share Capital

1

23,63,000

 

 

 

 

Notes to Accounts:

Note No.

Particulars

 


(
`)

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

 

 

 

 

 

Ts Grewal Solution 2022-2023

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