Chapter 9 – Company Accounts – Accounting for Share Capital – TS Grewal’s 2021
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.
Solution:
Question 2
Mandal 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.
Solution:
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.
Solution:
Fancy Co ltd has authorised
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.
Note: Problems related to Disclosure of Share Capital in company’s Balance Sheet are also given under the head issue of shares at par and at premium.
Solution:
