question_answer

On 1st April, 2017, Greeland Ltd was formed with an authorised capital of Rs. 5 00 000 divided into 50,000 equity shares of Rs. 10 each. The company issued prospectus inviting applications for 45,000 equity shares. The company received applications for 42,500 equity shares. During the first year, Rs. 8 per share were called. X holding 500 shares and Y holding 1,000 shares did not pay the first call of Rs. 2 per share Y's shares were forfeited after the first call and later on 750 of the forfeited shares were re-issued at Rs. 6 per share, Rs. 8 called-up. Show the following:

(i) Share capital in the balance sheet of the company as per Schedule III Part I of the Companies Act, 2013.

(ii) Also prepare notes to accounts for the same.

Answer:

                                                            Balance Sheet (Extract) as at 1st April, 2017

Particulars	Note No.	Amt (Rs.)
I.   EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital	1	3,38,500
(b) Reserves and Surplus	2	3,000

Notes to Accounts

	Particulars		Amt (Rs.)
1.	Share Capital
	Authorised Share Capital
	50,000 Equity Shares of Rs. 10 each		5,00,000
	Issued Share Capital
	45,000 Equity Shares of Rs. 10 each		4,50,000
	Subscribed Capital
	Subscribed but not Fully Paid-up
	42,250 Equity Shares of Rs. 8 each	3,38,000
	(-) Calls-in-arrears \[\left( 500\times 2 \right)\]	(1,000)
		3,37,000
	(+) Forfeited Shares \[\left( 250\times 6 \right)\]	1,500	3,38,500
2.	Reserves and Surplus
	Capital Reserve \[[4,500\,(750\times 6)-1,500\,(750\times 2)]\]		3,000