PRACTICAL PROBLEMS

(Calculation of different types of Capital):

From the following details calculate authorised capital, issued, subscribed, called up and paid up share Capital and also calls in arrear and uncalled capital:

Pankaj Ltd. was formed with a capital of Rs 5,00,000 divided in to 5,000 shares of Rs 100 each. Of these 1,000 shares were issued to the vendor as fully paid in payment of purchase of machinery. 3,000 shares were offered to the public and of these 2,500 shares were applied and allotted. Rs 10 was payable on application and Rs 25 on allotment. The balance was yet to be called. All the money called up was duly received with the exception of allotment money on 300 shares.

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Solution

Particulars

Amount

(Rs)

Authorised Capital

(5,000 shares of Rs 100 each)

5,00,000

Issued Capital
(1,000 + 3,000 × 100)

4,00,000

Subscribed Capital

(1,000 + 2,500 × 100)

3,50,000

Called-up Capital

1,000 shares of Rs 100 each

1,00,000

2,500 shares of Rs 35 each

87,500

1,87,500

Paid-up Capital
1,000 × 100 + 2,000 × 35 – 300 × 25 = 1,00,000 + 87,500 – 7,500

1,80,000

Calls-in-Arrears

(300 × 25)

7,500

Uncalled Capital

(2,500 × 35)

1,62,500

Balance Sheet (Liability side only)

Particulars

Amount

(Rs)

Amount

(Rs)

Authorised Capital

5,000 shares of Rs 100 each

5,00,000

Issued Capital

4,000 shares of Rs 100 each

4,00,000

Subscribed Capital

3,500 shares of Rs 100 each

3,50,000

Called-up Capital

2,000 shares of Rs 100 each issued to a vendor for purchase of a machinery

1,00,000

2,500 shares of Rs 100 each, Rs 35 called-up

87,500

Less: Calls-in-Arrears

7,500

80,000

Paid up Share Capital

1,80,000

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Particulars		Amount (Rs)
Authorised Capital (5,000 shares of Rs 100 each)		5,00,000
Issued Capital (1,000 + 3,000 × 100)		4,00,000
Subscribed Capital (1,000 + 2,500 × 100)		3,50,000
Called-up Capital
1,000 shares of Rs 100 each	1,00,000
2,500 shares of Rs 35 each	87,500	1,87,500
Paid-up Capital 1,000 × 100 + 2,000 × 35 – 300 × 25 = 1,00,000 + 87,500 – 7,500		1,80,000
Calls-in-Arrears (300 × 25)		7,500
Uncalled Capital (2,500 × 35)		1,62,500

Balance Sheet (Liability side only)
Particulars		Amount (Rs)	Amount (Rs)
Authorised Capital 5,000 shares of Rs 100 each		5,00,000
Issued Capital 4,000 shares of Rs 100 each		4,00,000
Subscribed Capital 3,500 shares of Rs 100 each		3,50,000
Called-up Capital
2,000 shares of Rs 100 each issued to a vendor for purchase of a machinery			1,00,000
2,500 shares of Rs 100 each, Rs 35 called-up	87,500
Less: Calls-in-Arrears	7,500		80,000
Paid up Share Capital			1,80,000