Question 33.
The authorised capital of Sarang Ltd. is ₹1,20,00,000 divided into 12,00,000 shares of 10 each. Out of these, company issued 8,00,000 shares of ₹10 each at a premium of 20%. The amount per share was payable as follows:
On Application ₹2
On Allotment ₹6 (including premium)
On First Call ₹2
On Final Call Balance
Public applied for 7,80,000 shares. All the money was duly received. Prepare an extract of Balance Sheet of Sarang Ltd. as per Schedule ll, Part I of the Companies Act, 2013, disclosing the above information. Also prepare 'Notes to Accounts' for the same.
(Foreign 2013, Modified)
Answer:
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
|
Sarang Ltd. |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
(₹) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital b. Securities premium reserve |
1 2 |
78,00,000 15,60,000 |
|
Total |
|
93,60,000 |
|
|
|
|
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
2 |
93,60,000 |
|
Total |
|
93,60,000 |
|
|
|
|
NOTES TO ACCOUNTS
|
|
|||
|
Note No. |
Particulars |
(₹) |
|
|
1 |
Share Capital |
|
|
|
|
Authorised Share Capital |
|
|
|
|
12,00,000 shares of ₹10 each |
1,20,00,000 |
|
|
|
Issued Share Capital |
|
|
|
|
2,00,000 shares of ₹10 each |
2,00,000 |
|
|
|
|
||
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
|
7,80,000 shares of ₹10 each |
78,00,000 |
|
|
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
|
Cash at Bank |
93,60,000 |
|
|
3 |
Reserve and surplus |
||
|
|
Securities premium reserve 7,80,000 shares at ₹2 each |
15,60,000 |
|
Question 34:
Climax Ltd. made the second and final call on its 50,000 Equity Shares @ ₹2 per share on 1st January, 2016. The entire amount was received on 15th January, 2016 except on 100 shares allotted to Venkat. Pass necessary journal entries for the call money due and received by opening Calls-in-Arrears Account.
(CBSE 2006 C, Modified)
Answer:
|
Books of Climax Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
2016 |
|
|
|
|
|
|
Jan. 01 |
Share Second and Final Call A/c |
Dr. |
|
1,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
1,00,000 |
|
|
|
(Share second and final call due on 50,000 shares at ₹2 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
Jan. 15 |
Bank A/c |
Dr. |
|
99,800 |
|
|
|
Calls-in-Arrears A/c |
Dr. |
|
200 |
|
|
|
To Share Second and Final Call A/c |
|
|
1,00,000 |
|
|
|
(Share second and final call received from 49,900 shares and 100 shares failed to pay the it) |
|
|
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Question 35:
Avon Ltd. issued for subscription 10,000 shares of ₹25 each, payable ₹5 per share on application, ₹10 per share on allotment (including ₹5 per share as premium), ₹5 per share as first call on the shares and the balance in two equal amounts at intervals of three months. All the shares were applied and allotted.
Due amount was received except the second call and final call on 200 and 400 shares respectively.
Pass the entries in the company's Journal, Cash Book and the Ledger. Also show the company's Balance Sheet on completion of the above transactions.
Answer:
Issued
and Subscribed Capital 10,000 shares of ₹25 each at ₹5 Premium
Payable as:
|
₹ |
5 |
On application |
|
₹ |
10 |
On allotment (including 5 Premium) |
|
₹ |
5 |
On first call |
|
₹ |
5 |
On Second call |
|
₹ |
5 |
On Third and final call |
|
|
30 |
|
|
Books of Avon Ltd. Journal |
|
|||||||||||
|
Date |
Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
|
|||||||
|
|
|
|
|
|
|
|||||||
|
|
Bank A/c (10,000×5) |
Dr. |
|
50,000 |
|
|
||||||
|
|
To Share Application A/c |
|
|
50,000 |
|
|||||||
|
|
(Share application money received for 10,000 shares at₹5 per share) |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|||||||
|
|
Share Application A/c |
Dr. |
|
50,000 |
|
|
||||||
|
|
To Share Capital A/c |
|
|
50,000 |
|
|||||||
|
|
(Share application Money transferred to Share Capital) |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|||||||
|
|
Share Allotment A/c (10,000×10) |
Dr. |
|
1,00,000 |
|
|
||||||
|
|
To Share Capital A/c (10,000×5) |
|
|
50,000 |
|
|||||||
|
|
To Securities Premium Reserves A/c (10,000×5) |
|
|
50,000 |
|
|||||||
|
|
(Share allotment due on 10,000 shares at₹5 with premium of ₹5 per share) |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|||||||
|
|
Bank A/c |
Dr. |
|
1,00,000 |
|
|
||||||
|
|
To Share Allotment A/c |
|
|
1,00,000 |
|
|||||||
|
|
(Share allotment money received) |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|||||||
|
|
Share First Call A/c (10,000×5) |
Dr. |
|
50,000 |
|
|
||||||
|
|
To Share Capital A/c |
|
|
50,000 |
|
|||||||
|
|
(Share first call due on 10,000 shares at₹5 per share) |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|||||||
|
|
Bank A/c (10,000×5) |
Dr. |
|
50,000 |
|
|
||||||
|
|
To Share First and Final call A/c |
|
|
50,000 |
|
|||||||
|
|
(Share first call received on 10,000 shares at₹5 per share) |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|||||||
|
|
Share Second Call A/c (10,000×5) |
Dr. |
|
50,000 |
|
|
||||||
|
|
To Share Capital A/c |
|
|
50,000 |
|
|||||||
|
|
(Share Second call due on 10,000 shares at₹5 per share) |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|||||||
|
|
Bank A/c (9,800×5) |
Dr. |
|
49,000 |
|
|
||||||
|
|
Calls-in-Arrears A/c (200×5) |
|
|
1,000 |
|
|
||||||
|
|
To Share Second call A/c |
|
|
50,000 |
|
|||||||
|
|
(Share Second call received on 10,000 shares at₹5 per share) |
|
|
|
|
|||||||
|
|
|
|
|
|
||||||||
|
|
Share third and final Call A/c (10,000×5) |
Dr. |
|
50,000 |
|
|
|||||||
|
|
To Share Capital A/c |
|
|
50,000 |
|
||||||||
|
|
(Share third and final call due on 10,000 shares at₹5 per share) |
|
|
|
|
||||||||
|
|
|
|
|
|
|
||||||||
|
|
Bank A/c (9,600×5) |
Dr. |
|
48,000 |
|
|
|||||||
|
|
Calls-in-Arrears A/c (400×5) |
|
|
2,000 |
|
|
|||||||
|
|
To Share third and final call A/c |
|
|
50,000 |
|
||||||||
|
|
(Share third and final call received on 10,000 shares at₹5 per share) |
|
|
|
|
||||||||
|
|
|
|
|
|
|
||||||||
|
Cash Book |
|||
|
Particulars |
₹ |
Particulars |
₹ |
|
To Share Application A/c |
50,000 |
By Balance C/d |
2,97,000 |
|
To Share Allotment A/c |
1,00,000 |
|
|
|
To Share First Call A/c |
50,000 |
|
|
|
To Share Second Call A/c |
49,000 |
|
|
|
To Share Third and Final Call A/c |
48,000 |
|
|
|
|
|
|
|
|
|
2,97,000 |
|
2,97,000 |
|
Share Application Account |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Date |
Particulars |
L.F. |
(₹) |
Date |
Particulars |
L.F. |
(₹) |
|
|
|
|
|
|
|
|
|
|
|
To Share Capital |
|
50,000 |
|
By Bank |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
|
|
|
|
|
|
|
Share Allotment Account |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Date |
Particulars |
L.F. |
(₹) |
Date |
Particulars |
L.F. |
(₹) |
|
|
|
|
|
|
|
|
|
|
|
To Share Capital |
|
50,000 |
|
By Bank |
|
1,00,000 |
|
|
To Securities Premium |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,00,000 |
|
|
|
1,00,000 |
|
|
|
|
|
|
|
|
|
|
Share First Call Account |
|
|||||||
|
Dr. |
|
Cr. |
|
|||||
|
Date |
Particulars |
L.F. |
(₹) |
Date |
Particulars |
L.F. |
(₹) |
|
|
|
|
|
|
|
|
|
|
|
|
|
To Share Capital |
|
50,000 |
|
By Bank |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Share Second Call Account |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Date |
Particulars |
L.F. |
(₹) |
Date |
Particulars |
L.F. |
(₹) |
|
|
|
|
|
|
|
|
|
|
|
To Share Capital |
|
50,000 |
|
By Bank |
|
49,000 |
|
|
|
|
|
|
By Calls-in-Arrears |
|
1,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
|
|
|
|
|
|
|
Share Final Call Account |
|
|||||||||||||||||||||||||
|
Dr. |
|
Cr. |
|
|||||||||||||||||||||||
|
Date |
Particulars |
L.F. |
Amount (₹) |
Date |
Particulars |
L.F. |
Amount (₹) |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
To Share Capital |
|
50,000 |
|
By Bank |
|
48,000 |
|
||||||||||||||||||
|
|
|
|
|
|
By Calls-in-Arrears |
|
2,000 |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
50,000 |
|
|
|
50,000 |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Call-in-Arrears Account |
||||||||||||||||||||||||||
|
Dr. |
|
Cr. |
||||||||||||||||||||||||
|
Date |
Particulars |
L.F. |
Amount (₹) |
Date |
Particulars |
L.F. |
Amount (₹) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
To Share Second Call |
|
1,000 |
|
By Balance c/d |
|
3,000 |
|||||||||||||||||||
|
|
To Share Final Call |
|
2,000 |
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||
|
|
|
|
3,000 |
|
|
|
3,000 |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Share Capital Account |
||||||||||||||||||||||||||
|
Dr. |
|
Cr. |
||||||||||||||||||||||||
|
Date |
Particulars |
L.F. |
Amount (₹) |
Date |
Particulars |
L.F. |
Amount (₹) |
|||||||||||||||||||
|
|
To Balance c/d |
|
2,50,000 |
|
By Share Application |
|
50,000 |
|||||||||||||||||||
|
|
|
|
|
|
By Share Allotment |
|
50,000 |
|||||||||||||||||||
|
|
|
|
|
|
By Share First Call |
|
50,000 |
|||||||||||||||||||
|
|
|
|
|
|
By Share Second |
|
50,000 |
|||||||||||||||||||
|
|
|
|
|
|
By Share Final Call |
|
50,000 |
|||||||||||||||||||
|
|
|
|||||||||||||||||||||||||
|
|
|
|
2,50,000 |
|
|
|
2,50,000 |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Securities Premium Account |
||||||||||||||||||||||||||
|
Dr. |
|
Cr. |
||||||||||||||||||||||||
|
Date |
Particulars |
L.F. |
Amount (₹) |
Date |
Particulars |
L.F. |
Amount (₹) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
To Balance c/d |
|
50,000 |
|
By Share Allotment |
|
50,000 |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
50,000 |
|
|
|
50,000 |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Balance Sheet |
||
|
Particulars |
Note No. |
Amount (₹) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
2,47,000 |
|
b. Reserves and Surplus |
2 |
50,000 |
|
2. Non-Current Liabilities |
|
|
|
3. Current Liabilities |
|
|
|
Total |
|
2,97,000 |
|
|
|
|
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
3 |
2,97,000 |
|
Total |
|
2,97,000 |
|
|
|
|
Notes to Accounts
|
|
|
|||||
|
Particulars |
|
(₹) |
||||
|
1. Share Capital |
|
|
||||
|
Authorised Share Capital |
|
|
||||
|
………. Equity Shares of ₹25 each |
|
… |
||||
|
|
|
|
||||
|
|
|
… |
||||
|
Issued Share Capital |
|
|
||||
|
10,000 Equity Shares of ₹25 each |
|
2,50,000 |
||||
|
|
|
|
2,50,000 |
|||
|
Subscribed Share Capital |
|
|
||||
|
Subscribed and Fully Paid-up Share Capital |
|
|
||||
|
9,400 Equity Shares of 25 each |
|
235,000 |
||||
|
Subscribed and But not Fully Paid-up Share Capital |
|
|||||
|
600 Equity Shares of 25 each |
15,000 |
|
||||
|
Less: Call-in-arrears (200×5)+(400×5) |
|
(3,000) |
12,000 |
|||
|
|
|
|
2,47,000 |
|||
|
2. Reserve and Surplus |
|
|
||||
|
Securities Premium Reserve (10,000×5) |
|
50,000 |
||||
|
|
|
50,000 |
||||
|
|
|
|
||||
|
3. Cash and Cash Equivalents Bank |
|
2,97,000 |
||||
|
|
|
2,97,000 |
||||
Question 36:
Usha Ltd. was formed with a capital of ₹10,00,000 divided into shares of ₹100 each. It offered 90% shares to public for subscription. The amount per share was payable as 40% on application, 20% on allotment andthe balance on first and final call. The applicants paid ₹3,60,000 on application and ₹1,69,000 on allotment.
The call has not yet been made. Calculate:
(a) Authorised Capital, (b) Issued Capital, (c) Subscribed Capital, (d) Called-up Capital, (e) Paid-up Capital and (f) Calls-in-Arrears.
Answer:
|
|
|||
|
Particulars |
(₹) |
||
|
Share Capital |
|
||
|
A |
Authorised Share Capital |
|
|
|
|
10,000 shares of ₹100 each |
10,00,000 |
|
|
B |
Issued Share Capital |
|
|
|
|
9,000 shares of ₹100 each |
9,00,000 |
|
|
C |
Subscribed Share Capital |
|
|
|
|
9,000 shares of ₹100 each, |
9,00,000 |
|
|
D |
Called-up share capital |
|
|
|
|
9,000 shares of ₹60 each |
5,40,000 |
|
|
E |
Paid – up share capital 9,000 shares of ₹60 each 5,40,000 Less: Calls-in-arrears (550×20) 11,000 |
5,39,000 |
|
|
F |
Calls-in-arrears Money received on Allotment ₹1,69,000 No. of shares on allotment money received= = 1,69,000/20= 8,450 No. of shares on allotment money have not been received =9,000-8,450=550 Allotment money not received= 550×20 |
11,000 |
|
Ts Grewal Solution 2026-2027
Click below for more Questions
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
Question No. 41 To 44
Question No. 45 To 48
Question No. 49 To 52
Question No. 53 To 56
Question No. 57 To 60
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Question No. 65 To 68
Question No. 69 To 72
Question No. 73 To 76
Question No. 77 To 80
Question No. 81 To 84
Question No. 85 To 88
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Question No. 93 To 96
Question No. 97 To 100
Question No. 101 To 104
Question No. 105 To 108
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Question No. 113 To 115