Question 4 Chapter 11 of Class 12 Part – 2 – 2024

Question 4 Chapter 11 of Class 12 Part – 2 – 2024

Arrangement of Balance sheet Items

4. (Showing Full Format of Share Capital) A company has authorize share capital of Rs 10,00,000 divided into 75,000 Equity shares of Rs 10 each and 2,500 10% preference Shares of Rs 100 each. It issued 60% of Equity shares and 80% Preference Shares. Public Subscribed for 40,000 Equity share and 1,500 Preference Shares. On Equity shares company called up Rs 8 per share and on preference shares Rs 80 were called up. All calls were received on Preference shares but on 1,000 equity shares second call of calls of Rs 2 was not received. Out of 1,000 Equity Shares 600 were forfeited as the amount was not likely to be received.
Show share capital in Balance Sheet.

The solution of Question 4 Chapter 11 of Class 12 Part – 2 – 2024 -

Balance Sheet

Particulars	Note no.	Amount
I. Equity and Liabilities
1. Shareholders’ Funds
Share Capital	1	4,38,000
Total		4,38,000

Notes to Accounts

Particulars	Note no.	Amount
1. Share Capital
Authorised Capital
75,000 equity Shares of Rs 10 each		7,50,000
2,500 10% Preference Shares of Rs 100 each		2,50,000
5,00,000 Shares of Rs 100 each		10,00,000
2. Issued Capital
45,000 equity Shares of Rs 10 each		4,50,000
2,000, 10% Preference Shares of Rs 100 each		2,00,000
		6,50,000
Subscribed Capital
Subscribed & Fully Paid-up Capital
39,400 equity Shares of Rs 10 each, Rs 8 called up
Less: Calls in arrears (400 x Rs 2 )		3,18,000
Add: Share Forfeited (600 x Rs 6 )
1,500, 10% Preference Shares of Rs 100 each, Rs 80 called up		1,20,000
		4,38,000