Question

Sultan Ltd. was registered with an authorised capital of Rs. 50,00,000 divided in 5,00,000 equity shares of Rs. 10 each. Company invited applications for 3,00,000 equity shares at a premium of Rs. 3 per share, payable as follows : Rs. 4 on Application ; Rs. 5 on Allotment (including premium); Balance as and when required.

Applications were received for 2,75,000 shares and allotment was made to all applicants. All money due on allotment was duly received except from one shareholder holding 1,000 shares.

Show the Balance Sheet of the Company.

Answer 1

BALANCE SHEET OF SULTAN LTD.

as at..........

$\begin{array}{cccc}\text{Particulars}& \text{Note}& \text{Current}& \text{Previous}\\ & \text{No.}& \text{Year}& \text{Year}\\ & & \text{(Rs.)}& \text{(Rs.)}\\ \text{1. EQUITY AND LIABILITIES :}& & & \\ \text{(1) Shareholder's Funds}& & & \\ \text{(a) Share Capital}& 1& 16,48,000& \\ \text{(b) Reserve and Surplus}& 2& 8,22,000& \\ & & \overline{\underset{–}{\underset{–}{24,70,000}}}& \\ \text{II. ASSETS :}& & & \\ \text{1. Current Assets :}& & & \\ \text{(a) Cash and Cash Equivalents}& 3& 24,70,000& \\ & & \overline{\underset{–}{\underset{–}{24,70,000}}}& \end{array}$

Notes to Accounts :

$\begin{array}{ccc}\text{Particulars}& & \text{Rs}\\ \text{(1) Share Capital}& & \\ \text{Authorised Capital}& & \\ \text{5,00,000 Equity Shares of Rs. 10 each}& & \underset{–}{\underset{–}{50,00,000}}\\ \text{Issued Capital :}& & \\ \text{3,00,000 Equity Shares of Rs. 10 each}& & \underset{–}{\underset{–}{30,00,000}}\\ \text{Subscribed but not fully paid Capital :}& & \\ \text{2,75,000 Equity Shares of Rs. 10 each, Rs. 6 Called up}& 16,50,000& \\ \text{Less : Calls in Arrears on 1,000 Shares @ Rs. 2}& \underset{–}{2,000}& \underset{–}{\underset{–}{16,48,000}}\\ \text{(2) Reserve and Surplus :}& & \\ \text{Securities Premium (2,75,000 Shares @ Rs. 3)}& 8,25,000& \\ \text{Less : Calls in Arrears on 1,000 Shares @ Rs 3}& \underset{–}{3,000}& \underset{–}{\underset{–}{8,22,000}}\\ \text{(3) Cash and Cash Equivalents :}& & \\ \text{Cash at Bank}& & \underset{–}{\underset{–}{24,70,000}}\end{array}$