T.S. Grewal Class 12 Vol 2 Chapter 1 Q.8 - Share Capital

Question 8

Red Roses Ltd. was registered with a capital of ₹25,00,000 divided into 25,000 Equity Shares of ₹100 each. It issued 15,000 Equity Shares to the public for subscription. The shares were subscribed and calls were made and received except the allotment money of ₹40 on 100 shares held by Parul, and the first and final call of ₹20 on 500 shares (including the shares held by Parul). Prepare the Balance Sheet showing Share Capital.

Solution

BALANCE SHEET OF RED ROSES LTD. (Extract)

Particulars	Note No.	₹
Shareholders’ Funds: Share Capital	1	14,86,000

NOTES TO ACCOUNTS

Particulars	₹
1. Share Capital
Authorised Share Capital: 25,000 Equity Shares of ₹100 each	25,00,000
Issued Share Capital: 15,000 Equity Shares of ₹100 each	15,00,000
Subscribed and Fully Paid-up: 14,500 Equity Shares of ₹100 each	14,50,000
Subscribed but not Fully Paid-up: 500 Equity Shares of ₹100 each	50,000
Less: Calls-in-Arrears [(100 × 40) + (500 × 20)]	(14,000)
Net	36,000
Total Share Capital	14,86,000

Note: Parul’s 100 shares are short by both the ₹40 allotment default and the ₹20 final-call default (₹60 total per share); the remaining 400 of the 500 final-call defaulters owe only the ₹20 call.