Question

Vijay Ltd. was registered with an authorized capital of ₹ 15,00,000 divided into 1,50,000 equity shares of ₹ 10 each.

The company issued 1,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The company received applications for 80,000 equity shares and was allotted the shares. The company received application money ₹ 3 per share, allotment money ₹ 4 per share (Including premium) and first, call money ₹ 3 per share.

The Directors have not made the final call of ₹ 2 per share. All money was received except one shareholder holding 500 shares did not pay the first call.

Show Authorised Capital, Issued Capital, Subscribed Capital, Called-up Capital, Paid-up Capital, Calls in Arrears, and Share Premium amount in the company balance sheet.

Answer 1

In the books of Vijay Ltd.

Balance Sheet as on __________

Working Notes:

1. Bank balance at the end = Amount received on application + Amount received on allotment + Amount received on 1st call + Premium amount received

= 80,000 × 3 + 80,000 × 2 × 79,500 × 3 + 80,000 × 2

= 2,40,000 + 1,60,000 + 2,38,500 + 1,60,000

= ₹ 7,98,500

2. Directors have not made the final call of ₹ 2

per share means total called-up amount = ₹ 10 – ₹ 2 = ₹ 8

3. Calls-in-Arrears on 500 shares at ₹ 3 = ₹ 1,500 of the first call

4. Share premium on 80,000 shares @ ₹ 2 received at allotment stage i.e. share premium amount = 80,000 x ₹ 2 = ₹ 1,60,000