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Forfeiture of Shares-Issued at Premium

Janta ltd. ha...

Question

Janta ltd. had an authorised capital capital of rs. 2,00,000 divided into equity shares of rs. 10 each. The company offered for subscription rs. 1,00,000 shares. The issue was fully subscribed. The amount payable on application was rs.2 per share. Rs. 4 per share were payable on allotment and first and final call. A shareholder holding 100 shares failed to pay the allotment money. His shares were forfeited. The company did not make the final call.
Show how the 'share capital' will be shown in the company's balance-sheet. Also, prepare notes to accounts for the same.

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Solution

Balance Sheet of Janta Ltd.
as on……
Particulars
Note No.
Figures at the end of the Current Year

I. Equity and Liabilities

Shareholders’ Funds

a. Share Capital
1
59,600

NOTES TO ACCOUNTS
Note No.
Particulars
Amount
(Rs)
1
Share Capital

Authorised Capital
2,00,000

20,000 Equity Shares of Rs 10 each

Issued Capital

10,000 Equity Shares of Rs 10 each
1,00,000

Subscribed, but not fully paid

9,900 shares of Rs 10 each Rs 6 called-up
59,400

Add: Share Forfeited A/c
200
59,600

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Balance Sheet of Janta Ltd. as on……
Particulars	Note No.	Figures at the end of the Current Year

I. Equity and Liabilities
Shareholders’ Funds
a. Share Capital	1	59,600

Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Capital		2,00,000
	20,000 Equity Shares of Rs 10 each
	Issued Capital
	10,000 Equity Shares of Rs 10 each		1,00,000
	Subscribed, but not fully paid
	9,900 shares of Rs 10 each Rs 6 called-up	59,400
	Add: Share Forfeited A/c	200	59,600