Question:
ABC Ltd. was registered with authorised capital of \(₹1,00,00,000\) divided into 10,00,000 equity shares of \(₹10\) each. On 1stApril, 2024, the company offered to the public for subscription, 1,00,000 shares. Applications for 99,000 shares were received and allotment was made in full to all the applicants. A shareholder holding 9,000 shares failed to pay the final call of \(₹3\) per share.
Answer the following questions :
(i) The authorised capital of the company is :
ABC Ltd. was registered with authorised capital of \(₹1,00,00,000\) divided into 10,00,000 equity shares of \(₹10\) each. On 1stApril, 2024, the company offered to the public for subscription, 1,00,000 shares. Applications for 99,000 shares were received and allotment was made in full to all the applicants. A shareholder holding 9,000 shares failed to pay the final call of \(₹3\) per share.
Answer the following questions :
(i) The authorised capital of the company is :
Answer the following questions :
(i) The authorised capital of the company is :
Show Hint
Authorised capital = Maximum number of shares \(\times\) face value per share.
Updated On: Jul 8, 2025
Hide Solution
Verified By Collegedunia
Solution and Explanation
Authorised Capital is the maximum capital that a company is authorised to raise through the issue of shares.
\[10,00,000 \text{ shares} \times ₹10 = ₹1,00,00,000\]
Hence, Option (C) is correct.
\[10,00,000 \text{ shares} \times ₹10 = ₹1,00,00,000\]
Hence, Option (C) is correct.
Was this answer helpful?
0
0
Top Questions on Accounting for Share Capital
- Sona Ltd. invited applications for issuing 60,000 equity shares of ₹ 50 each. The amount was payable as follows:
On Application – ₹ 20 per share
On Allotment – ₹ 25 per share
On First and final call – Balance
Applications for 90,000 shares were received. Applications for 10,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Rahul, to whom 600 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately. Afterwards, the first and final call was made. Mona, to whom 1,000 shares were allotted, failed to pay the first and final call. Her shares were also forfeited. Pass necessary journal entries in the books of Sona Ltd. for the above transactions.- CBSE CLASS XII - 2025
- Accountancy
- Accounting for Share Capital
- Radhika Ltd. invited applications for issuing 40,000 equity shares of ₹ 100 each at a premium of ₹ 50 per share. The amount was payable as follows:
On Application and Allotment – ₹ 40 per share (including ₹ 10 premium)
On First call – ₹ 45 per share (including ₹ 5 premium)
On Second and final call – Balance
Applications for 39,000 shares were received. Allotment was made in full to all the applicants. Dinu, to whom 100 shares were allotted, failed to pay the first call money. His shares were immediately forfeited. The forfeited shares were re-issued thereafter at ₹ 70 per share fully paid up. The second and final call was not yet made. Pass necessary journal entries for the above transactions in the books of Radhika Ltd.- CBSE CLASS XII - 2025
- Accountancy
- Accounting for Share Capital
- X Ltd. invited applications for 90,000 equity shares of ₹ 100 each. Applications for 2,00,000 shares were received. 5,000 shares applicant paid full amount with application. Allotment = ₹50, Application = ₹20, Final Call = ₹30.
- CBSE CLASS XII - 2025
- Accountancy
- Accounting for Share Capital
- Jeeta Ltd. forfeited 300 shares of \(₹100\) each for the non-payment of final call of \(₹10\) per share. The amount credited to share forfeiture account will be :
- CBSE CLASS XII - 2025
- Accountancy
- Accounting for Share Capital
- Meeta Ltd. invited applications for issuing 30,000 equity shares of \(₹10\) each. Applications for 29,500 shares were received. Allotment was made in full. A shareholder holding 100 shares failed to pay the first call of \(₹2\) per share. His shares were forfeited. The second call of \(₹3\) per share was not yet made. The amount debited to share capital account, on the forfeiture of shares will be :
- CBSE CLASS XII - 2025
- Accountancy
- Accounting for Share Capital
View More Questions
Questions Asked in CBSE CLASS XII exam
Complete and balance the following chemical equations: (a) \[ 2MnO_4^-(aq) + 10I^-(aq) + 16H^+(aq) \rightarrow \] (b) \[ Cr_2O_7^{2-}(aq) + 6Fe^{2+}(aq) + 14H^+(aq) \rightarrow \]
- CBSE CLASS XII - 2025
- Redox Reactions
- Pulkit and Ravinder were partners in a firm sharing profits and losses in the ratio of 3 : 2. Sikander was admitted as a new partner for \( \frac{1}{5} \)th share in the profits of the firm. Pulkit, Ravinder and Sikander decided to share future profits in the ratio of 2 : 2 : 1. Sikander brought Rs 5,00,000 as his capital and Rs 10,00,000 as his share of premium for goodwill. The amount of premium for goodwill that will be credited to the old partners' capital accounts will be :
- CBSE CLASS XII - 2025
- Partnership Accounts
- What is the term used for the milk produced during the initial days of lactation?
- CBSE CLASS XII - 2025
- human health and disease
- Find: \[ I = \int (\sqrt{\tan x} + \sqrt{\cot x}) dx. \]
- CBSE CLASS XII - 2025
- Integration by Parts
Rupal, Shanu and Trisha were partners in a firm sharing profits and losses in the ratio of 4:3:1. Their Balance Sheet as at 31st March, 2024 was as follows:
(i) Trisha's share of profit was entirely taken by Shanu.
(ii) Fixed assets were found to be undervalued by Rs 2,40,000.
(iii) Stock was revalued at Rs 2,00,000.
(iv) Goodwill of the firm was valued at Rs 8,00,000 on Trisha's retirement.
(v) The total capital of the new firm was fixed at Rs 16,00,000 which was adjusted according to the new profit sharing ratio of the partners. For this necessary cash was paid off or brought in by the partners as the case may be.
Prepare Revaluation Account and Partners' Capital Accounts.- CBSE CLASS XII - 2025
- Partnership Accounts
View More Questions