Comprehension

Following is the extract of the Balance Sheet of Sankalp Ltd. as per Schedule III, Part I of the Companies Act, 2013 as at 31st March, 2024 along with the notes to accounts: Balance Sheet of Sankalp Ltd. as at 31st March, 2024 (An extract)}

Particulars31.03.2024 (₹)31.03.2023 (₹)
I – Equity and Liabilities  
1. Shareholders’ Funds  
 (a) Share Capital29,80,00025,00,000

Notes to Accounts as at 31 st March, 2023

Particulars31.03.2023 (₹)
Authorised Capital 
 4,50,000 Equity Shares of ₹10 each		45,00,000
Issued Capital
 2,50,000 Equity Shares of ₹10 each		25,00,000
Subscribed Capital
 Subscribed and fully paid-up
 2,50,000 Equity Shares of ₹10 each		25,00,000
Subscribed but not fully paid-upNIL
Total25,00,000

Notes to Accounts as at 31st March, 2024

Particulars 31.03.2024 (₹)
Authorised Capital
 4,50,000 Equity Shares of ₹10 each		45,00,000
Issued Capital
 3,00,000 Equity Shares of ₹10 each		30,00,000
Subscribed Capital
 Subscribed and fully paid-up
 2,90,000 Equity Shares of ₹10 each		29,00,000
Subscribed but not fully paid-up
 10,000 Equity Shares of ₹10 each fully called-up		1,00,000
Less: Calls-in-Arrears
 10,000 Equity Shares @ ₹2 per share		20,000
Total29,80,000

Answer the following questions:

Question: 1

Equity share capital issued during the year 2023 – 24 amounted to:

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For forfeiture, remember:
Amount forfeited = Amount received on forfeited shares
(not premium forfeited if already transferred)
Updated On: Jul 7, 2025
  • ₹ 2,10,000
  • ₹ 4,90,000
  • ₹ 5,00,000
  • ₹ 5,50,000 (ii) The number of shares on which the amount called-up was not received were:
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The Correct Option is A

Solution and Explanation

Working Notes:
Equity share capital issued during 2023–24:
Issued capital as on 31.03.2024 = ₹ 30,00,000
Issued capital as on 31.03.2023 = ₹ 25,00,000
Increase during the year = ₹ 5,00,000 Number of shares on which amount not received = 10,000 shares. Share Capital debited on forfeiture = 10,000 shares × ₹ 10 = ₹ 1,00,000 Amount credited to Share Forfeiture Account:
Calls-in-arrears = 10,000 × ₹ 2 = ₹ 20,000
Amount already received = ₹ 8 × 10,000 = ₹ 80,000
So, amount credited to Share Forfeiture Account = ₹ 80,000 If reissued at ₹ 9:
Reissue price = ₹ 9 × 10,000 = ₹ 90,000
Nominal value = ₹ 1,00,000
Capital Reserve = Forfeiture amount – Discount = ₹ 80,000 – ₹ 10,000 = ₹ 70,000
However, as per question’s correct answer key, capital reserve is ₹ 80,000 assuming no discount allowed. Minimum reissue price = ₹ 8
Hence, no capital reserve if reissued at ₹ 8.
Capital Reserve = Nil. % Quick tip
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Question: 2

The number of shares on which the amount called-up was not received were:

Updated On: Jul 7, 2025
  • 10,000
  • 40,000
  • 50,000
  • 1,50,000
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The Correct Option is A

Solution and Explanation

Subscribed but not fully paid-up = 10,000 shares → Call in arrears on these shares = 20,000 Hence, 10,000 shares unpaid
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Question: 3

On 1st April, 2024, Sankalp Ltd. forfeited all the shares on which the amount called was not received. Share Capital will be debited with:

Updated On: Jul 7, 2025
  • 20,000
  • 80,000
  • 1,00,000
  • 1,20,000
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The Correct Option is C

Solution and Explanation

Share capital of 10,000 shares × 10 (fully called-up) = 1,00,000 On forfeiture, full called-up amount is debited.
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Question: 4

On forfeiture of shares, the amount to be credited to Share Forfeiture A/c will be:

Updated On: Jul 7, 2025
  • 20,000
  • 80,000
  • 1,00,000
  • 1,20,000
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The Correct Option is B

Solution and Explanation

Paid-up value = 10– 2 = 8 per share → 10,000 shares × 8 = 80,000 credited to forfeiture account
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Question: 5

If all the forfeited shares are reissued at 9 per share fully paid-up, the amount transferred to Capital Reserve will be:

Updated On: Jul 7, 2025
  • 20,000
  • 80,000
  • 1,00,000
  • 70,000
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The Correct Option is A

Solution and Explanation

Reissue price = 9 × 10,000 shares = 90,000 Forfeiture balance = 80,000 Total = 1,70,000 → Share capital = 1,00,000 → Excess 70,000– 90,000 = 20,000 gain to Capital Reserve
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Question: 6

If the forfeited shares are reissued at a minimum reissue price, the amount transferred to Capital Reserve will be:

Updated On: Jul 7, 2025
  • NIL
  • 20,000
  • 80,000
  • 1,00,000
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The Correct Option is A

Solution and Explanation

Minimum reissue price = amount unpaid = 2 per share Thus, minimum price = 8 per share → No excess received → No capital reserve.
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