Question

N.K. Ltd., a truck manufacturing company, is registered with an authorised capital of Rs 1,00,000 divided into equity shares of Rs 100 each. The subscribed and paid up capital of the company is Rs 50,00,000. The company decided to open technical schools in the Jhalawar district of Rajasthan to train the specially abled children of the area. It is planning to provide them employment in its various production units and industries in the neighbourhood area.

To meet the capital expenditure requiements of the project, the company offered 20,000 shares to the public for subscription. The shares were fully subscribed and paid. Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the Companies Act, 2013.

Answer 1

BALANCE SHEET OF N.K.LTD.
as on .............
$\begin{array}{ccc}\text{Particulars}& \text{Note No.}& \text{Current Year}\\ & & \text{(Rs)}\\ I.\text{Equity and Liabilities}& & \\ \text{1. Shareholders Funds}& & \\ \text{(a) Share Capital}& 1& 70,00,000\end{array}$

Notes to Account:
$\begin{array}{cc}\text{Particulars}& \text{Amount}\\ & \text{(Rs)}\\ 1.\text{Share Capital}& 1,00,00,000\\ \text{Authorised Capital A/c}& \\ \underset{–}{\text{(1,00,000 equity shares @ Rs 100 each)}}& \\ \text{Issued Capital}& 70,00,000\\ \underset{–}{\text{(70,000 equity shares of Rs 100 each)}}& \\ \text{Subscribed and fully paid}& 70,00,000\\ \text{(70,000 equity shares of Rs 100 each)}& \end{array}$