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Read the following information and answer the given questions:
Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.
What will be the amount of Share Capital shown in the Balance Sheet?
- a)₹20,00,000
- b)₹14,00,000
- c)₹15,00,000
- d)₹5,00,000
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
Read the following information and answer the given questions:Pinnacl...
Subscribed Capital: Amount (₹)
5000 equity shares @ 5,00,000
₹100 issued against
purchase of Plant
and Machinery.
15,000 equity shares @ ₹60 9,00,000
Total 14,00,000
Most Upvoted Answer
Read the following information and answer the given questions:Pinnacl...
Amount of Share Capital shown in the Balance Sheet
The amount of Share Capital shown in the Balance Sheet can be calculated by considering the initial capital, the shares issued, and the amount called from the public.
Step 1: Initial Capital
The company registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. This means that the initial capital of the company is ₹ 20,00,000.
Step 2: Shares issued to Mila Herbals
On 1st June, 2015, the company issued 5,000 fully paid Equity Shares to Mila Herbals as a purchase consideration for the purchase of plant and machinery. As these shares were fully paid, they are considered part of the total share capital.
Step 3: Shares issued to the public
The remaining shares were issued to the public at par. This means that the public was given the opportunity to purchase shares at their face value of ₹100 each.
Step 4: Amount called from the public
Till the date of the Balance Sheet, the directors had called from the public 60% of the nominal value of the shares. The nominal value of each share is ₹100, so 60% of the nominal value is ₹60. This means that the directors had called ₹60 from the public for each share.
Step 5: Calculation
To calculate the amount of Share Capital shown in the Balance Sheet, we need to consider the initial capital, shares issued to Mila Herbals, and the amount called from the public.
Initial Capital: ₹20,00,000
Shares issued to Mila Herbals: 5,000 shares
Amount called from the public: 60% of the nominal value of each share
The amount called from the public can be calculated as follows:
Amount called from the public = 60% of ₹100 = ₹60
The total amount called from the public can be calculated as follows:
Total amount called from the public = Amount called from the public per share x Number of shares issued to the public
Total amount called from the public = ₹60 x (Total number of shares issued - Shares issued to Mila Herbals)
Total amount called from the public = ₹60 x (Total number of shares issued - 5,000 shares)
The total number of shares issued to the public can be calculated as follows:
Total number of shares issued to the public = Total number of shares issued - Shares issued to Mila Herbals
Total number of shares issued to the public = Total number of shares issued - 5,000 shares
Once the total amount called from the public is calculated, it can be added to the initial capital to determine the amount of Share Capital shown in the Balance Sheet.
Answer
The amount of Share Capital shown in the Balance Sheet is ₹14,00,000 (option B).
The amount of Share Capital shown in the Balance Sheet can be calculated by considering the initial capital, the shares issued, and the amount called from the public.
Step 1: Initial Capital
The company registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. This means that the initial capital of the company is ₹ 20,00,000.
Step 2: Shares issued to Mila Herbals
On 1st June, 2015, the company issued 5,000 fully paid Equity Shares to Mila Herbals as a purchase consideration for the purchase of plant and machinery. As these shares were fully paid, they are considered part of the total share capital.
Step 3: Shares issued to the public
The remaining shares were issued to the public at par. This means that the public was given the opportunity to purchase shares at their face value of ₹100 each.
Step 4: Amount called from the public
Till the date of the Balance Sheet, the directors had called from the public 60% of the nominal value of the shares. The nominal value of each share is ₹100, so 60% of the nominal value is ₹60. This means that the directors had called ₹60 from the public for each share.
Step 5: Calculation
To calculate the amount of Share Capital shown in the Balance Sheet, we need to consider the initial capital, shares issued to Mila Herbals, and the amount called from the public.
Initial Capital: ₹20,00,000
Shares issued to Mila Herbals: 5,000 shares
Amount called from the public: 60% of the nominal value of each share
The amount called from the public can be calculated as follows:
Amount called from the public = 60% of ₹100 = ₹60
The total amount called from the public can be calculated as follows:
Total amount called from the public = Amount called from the public per share x Number of shares issued to the public
Total amount called from the public = ₹60 x (Total number of shares issued - Shares issued to Mila Herbals)
Total amount called from the public = ₹60 x (Total number of shares issued - 5,000 shares)
The total number of shares issued to the public can be calculated as follows:
Total number of shares issued to the public = Total number of shares issued - Shares issued to Mila Herbals
Total number of shares issued to the public = Total number of shares issued - 5,000 shares
Once the total amount called from the public is calculated, it can be added to the initial capital to determine the amount of Share Capital shown in the Balance Sheet.
Answer
The amount of Share Capital shown in the Balance Sheet is ₹14,00,000 (option B).
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Read the following information and answer the given questions:Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.What will be the amount of Share Capital shown in the Balance Sheet?a)₹20,00,000b)₹14,00,000c)₹15,00,000d)₹5,00,000Correct answer is option 'B'. Can you explain this answer?
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Read the following information and answer the given questions:Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.What will be the amount of Share Capital shown in the Balance Sheet?a)₹20,00,000b)₹14,00,000c)₹15,00,000d)₹5,00,000Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following information and answer the given questions:Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.What will be the amount of Share Capital shown in the Balance Sheet?a)₹20,00,000b)₹14,00,000c)₹15,00,000d)₹5,00,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following information and answer the given questions:Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.What will be the amount of Share Capital shown in the Balance Sheet?a)₹20,00,000b)₹14,00,000c)₹15,00,000d)₹5,00,000Correct answer is option 'B'. Can you explain this answer?.
Read the following information and answer the given questions:Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.What will be the amount of Share Capital shown in the Balance Sheet?a)₹20,00,000b)₹14,00,000c)₹15,00,000d)₹5,00,000Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following information and answer the given questions:Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.What will be the amount of Share Capital shown in the Balance Sheet?a)₹20,00,000b)₹14,00,000c)₹15,00,000d)₹5,00,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following information and answer the given questions:Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.What will be the amount of Share Capital shown in the Balance Sheet?a)₹20,00,000b)₹14,00,000c)₹15,00,000d)₹5,00,000Correct answer is option 'B'. Can you explain this answer?.
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