Company Accounts Issue of Share - Class 12 PDF Download

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Q. 1. Vikas Ltd. has an authorised capital of `40,00,000 divided into 4,00,000 equity Shares
of `10 each. Out of these, the company invited applications for 3,00,000 equity shares.
The public applied for 2,80,000 shares and all the money was duly received.
Show how Share Capital will appear in the Balance Sheet to the Company. Also
prepare notes to accounts.
SOLUTION:
EXTRACT OF BALANCE SHEET OF VIKAS LTD.
As at………………………
Particulars Note
No.
Amount
current
year
Amount
previous
year
I. EQUITY AND LIABILITIES :
Shareholder’s Funds
(a) Share Capital
1
`
28,00,000
`
Notes to Accounts :
Particulars `
(1) Share Capital:
Authorised Capital:
4,00,000 Equity Shares of ` 10 each 40,00,000
Issued Capital:
3,00,000 Equity Shares of ` 10 each 30,00,000
Subscribed & Fully Paid :
2,80,000 Equity Shares of ` 10 each 28,00,000
Q. 2. ‘Tractors India Ltd.’ is registered with an authorized capital of `10,00,000 divided
into 1,00,000 equity shares of `10 each. The company issued 50,000 equity shares at a
premium of `5 per share. `2 per share were payable with application, `8 per share
including premium on allotment and the balance amount on first and final call. The issue
was fully subscribed and all the amount due was received except the first and final call
money on 500 shares allotted to Balram.
Present the ‘Share Capital’ in the Balance Sheet of ‘Tractors India Ltd.’ as per Schedule III
Part I of the Companies Act, 2013. Also prepare Notes to Accounts for the same.
(C.B.S.E. 2015, Set I)
SOLUTION:
Tractors India Ltd.
EXTRACT OF BALANCE SHEET as at
Particulars
Note
No.
Current
year
Previous
year
` `
I. EQUITY & LIABILITIES :
Shareholder’s Funds :
(a) Share Capital 1 4,97,500
Notes to Accounts:
1
Company Accounts — Issue of Shares
Particulars
`
(1) Share Capital:
Authorised Capital :
1,00,000 Equity Shares of `10 each 10,00,000
Issued Capital :
50,000 Equity Shares of ` 10 each 5,00,000
Subscribed and Fully Paid Capital :
49,500 Equity Shares of `10 each fully called up
Subscribed but not Fully Paid Capital :
500 Equity Shares of `10 each fully Called up 5,000
4,95,000
Less : Calls in Arrears (500 Shares x `5) 2,500 2,500 4,97,500
Q. 3. Nupur Ltd. was registered with an Authorised Capital of `20,00,000 divided into
2,00,000 equity shares of `10 each. The Company offered 1,50,000 equity shares for
subscription to public and applications were received for 1,40,000 equity shares. The
directors called `7 per share upto 31st March and the money called was duly received.
Show the Share Capital in the Balance Sheet of the Company together with notes
to accounts.
SOLUTION:
EXTRACT OF BALANCE SHEET OF NUPUR LTD.
As at…………………..
Particulars
Note
No.
Amount
current
year
Amount
previous
year
I. EQUITY AND LIABILITIES :
Shareholder’s Funds :
` `
(a) Share Capital
1
9,80,000

Notes to Accounts:
Particulars `
(1) Share Capital:
Authorised Capital:
2,00,000 Equity Shares of `10 each 20,00,000
Issued Capital:
1,50,000 Equity Shares of `10 each 15,00,000
Subscribed but not Fully Paid Capital
1,40,000 Equity Shares of `10 each; `7 Called up
9,80,000
Q. 4. On 1st April, 2012, Shakti Ltd. was formed with an authorized capital of `60,00,000
divided into 3,00,000 equity shares of `20 each. Out of these, 50,000 shares were issued
to the vendors as fully paid up for purchase of office premises. The directors offered
1,20,000 shares to the public and called up `10 per share and received the entire called up
amount on these shares.
2
Company Accounts — Issue of Shares
Show the share capital in the Balance Sheet of the company as per Schedule-III and also
prepare ‘notes to accounts’.
SOLUTION:
EXTRACT OF BALANCE SHEET OF SHAKTI LTD.
As at 31st March, 2013
Particulars Note
No.
31.03.2013 31.03.2012
I. EQUITY AND LIABILITIES :
Shareholder’s Funds :
(a) Share Capital 1
`
22,00,000
`
TOTAL
22,00,000

Notes to Accounts :
Particulars 31.03.2013
(1) Share Capital:
Authorised Capital:
3,00,000 Equity Shares of `20 each
`
60,00,000
Issued Capital:
1,70,000 Equity Shares of `20 each Fully Paid up
34,00,000
Subscribed Capital:
Subscribed and Fully Paid Capital:
Equity Shares of `20 each fully Paid up Subscribed but not Fully
Paid Capital:
Equity Shares of `20 each issued to public, `10 called up
TOTAL
10,00,000
12,00,000
22,00,000
Note: 50,000 Equity Shares of `20 each are allotted to vendors as fully paid-up pursuant to a
contract without payment being received in cash.
Q. 5. Rama Co. issued 50,000 shares of `10 each payable as follows:
`3 on Application; ` 3 on Allotment;
`2 on First Call; ` 2 on Final Call.
All the shares were subscribed and allotted. Give Journal entries and show the Share Capital
in the Balance Sheet assuming that all sums have been duly received. Expenses on issue of
shares amounted to ` 10,000.
SOLUTION:
JOURNAL ENTRIES
Date Particulars L.F.
Dr. Cr.
Bank A/c
To Equity Share Application A/c
(Money received on application for 50,000 shares
@ `3 per share)
Dr.
`
1,50,000
`
1,50,000
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Company Accounts — Issue of Shares

Equity Share Application A/c
To Equity Share Capital A/c
(Transfer of application money to Share Capital
A/c)
Dr.

1,50,000 1,50,000
Equity Share Allotment A/c
To Equity Share Capital A/c
(Allotment money due on 50,000 shares @ `3 per
share)
Dr.

1,50,000 1,50,000
Bank A/c
To Equity Share Allotment A/c
(Allotment money received)
Dr.

1,50,000 1,50,000
Equity Share First Call A/c
To Equity Share Capital A/c
(First call due on 50,000 shares @ `2 per share)
Dr.

1,00,000 1,00,000
Bank A/c
To Equity Share First Call A/c
(First call received on 50,000 shares @ `2 per
share)
Dr.

1,00,000 1,00,000
Equity Share Final Call A/c
To Equity Share Capital A/c
(Final call due on 50,000 shares @ `2 per share)
Dr.

1,00,000 1,00,000
Bank A/c
To Equity Share Final Call A/c
(Final Call Money received)
Dr.

1,00,000 1,00,000
Share Issue Expenses A/c
To Bank A/c
(Expenses incurred on issue of shares)
Dr.

10,000 10,000

EXTRACT OF BALANCE SHEET OF RAMA CO.
As at………..
Particulars
Note
No.
Current
Year
Previous
Year
I. EQUITY AND LIABILITIES :
`
`
Shareholder’s Funds
(a) Share Capital
1
5,00,000

Notes to Accounts:

Particulars `
(1) Share Capital:
Authorised Capital:
………… Shares of `…….. each …………….
Issued Capital, Subscribed & Fully Paid-up:
50,000 Equity Shares of `10 each

5,00,000

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