T.S. Grewal Class 12 Vol 2 Chapter 1 Q.36 - Share Capital

Question 36

Usha Ltd. was formed with a capital of ₹10,00,000 divided into shares of ₹100 each. It offered 90% of the shares to the public for subscription. The amount per share was payable as 40% on application, 20% on allotment, and the balance on first and final call. Applicants paid ₹3,60,000 on application and ₹1,69,000 on allotment. The call has not yet been made. Calculate: (a) Authorised Capital, (b) Issued Capital, (c) Subscribed Capital, (d) Called-up Capital, (e) Paid-up Capital, and (f) Calls-in-Arrears.

Solution

SHARE CAPITAL COMPUTATION

Particulars	₹
(a) Authorised Share Capital: 10,000 shares of ₹100 each	10,00,000
(b) Issued Share Capital: 9,000 shares of ₹100 each	9,00,000
(c) Subscribed Share Capital: 9,000 shares of ₹100 each	9,00,000
(d) Called-up Share Capital: 9,000 shares, ₹60 called (40% + 20%)	5,40,000
(e) Paid-up Share Capital: 5,40,000 less Calls-in-Arrears (11,000)	5,29,000
(f) Calls-in-Arrears: 550 shares × ₹20	11,000

Working Notes: Shares applied for = 3,60,000 ÷ 40 = 9,000 (matching the 90% of 10,000 shares offered, i.e. fully subscribed). Shares on which allotment money was received = 1,69,000 ÷ 20 = 8,450; shares in arrears = 9,000 – 8,450 = 550, so Calls-in-Arrears = 550 × ₹20 = ₹11,000.

Note: The source states Paid-up Capital as ₹5,39,000, but 5,40,000 – 11,000 = 5,29,000 (a straightforward arithmetic slip in the source, corrected above).