Sunshine Ltd has an authorised capital of Rs. 10,00,000 divided into equity shares of Rs. 10 each. The Company invited applications for 50,000 shares. Applications for 40,000 shares were received. All calls were made and duly received except the final call of Rs. 2 per share on 1,000 shares. Out of the shares on which final call was not received, 500 shares were forfeited. Show how share capital will appear in the Balance Sheet of the company as per Schedule III of the Companies Act, 2013?
Also, prepare Note to Accounts for the same.
Dear Student
This question is of share forfeiture and Re issue of Some forfeited shares.
We need to prepare Note of Share capital. For this we will have to calculate the amount left in share forfeiture account, Calls in Arrears and Number of share fully paid up and Partially paid up. This calculation can be easily done from the information given in the question.
After calculation of the above amounts we need to Prepare the Note as per the format :
Consider the solution below for better understanding :
Regards
This question is of share forfeiture and Re issue of Some forfeited shares.
We need to prepare Note of Share capital. For this we will have to calculate the amount left in share forfeiture account, Calls in Arrears and Number of share fully paid up and Partially paid up. This calculation can be easily done from the information given in the question.
After calculation of the above amounts we need to Prepare the Note as per the format :
Consider the solution below for better understanding :
| Particulars | Amt | Amt |
| Authorised Capital | ||
| 100,000 Equity Shares of Rs. 10/- each. | 10,00,000 | |
| - | 10,00,000 | |
| Issued Capital | ||
| 50,000 Equity Shares of Rs. 10/- each. | 5,00,000 | |
| - | 5,00,000 | |
| Subscribed Capital | ||
| Subscribed and Fully Paid up | ||
| 39,000 Equity Shares of Rs. 10/- each | 3,90,000 | |
| Subscribed but not Fully Paid up | ||
| 500 Equity Shares of Rs. 10/- each , Rs 10/- called up | 5,000 | |
| Less : Calls in Arrears (500 x 2) | 1,000 | 4,000 |
| Add: Share Forefiture A/c (500 x 8) | 4,000 | |
| - | 3,98,000 | |
Regards