Question

Janta Ltd. had an authorised 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 was payable each 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.

Answer 1

Janta Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	59,600
2. Non-Current Liabilities
3. Current Liabilities
Total		59,600
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	59,600
Total		59,600

NOTES TO ACCOUNTS

Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	20,000 shares of Rs 10 each		2,00,000
	Issued Share Capital
	10,000 shares of Rs 10 each		1,00,000
	Subscribed, Called-up and Paid-up Share Capital
	9,900 shares of Rs 10 each on which Rs 6 Called-up	59,400
	Add: Shares Forfeited (100 × 2)	200	59,600
2	Cash and Cash Equivalents
	Cash at Bank		59,600