Question

Following is the extract of the Balance Sheet of Vikalp Ltd. as per Schedule-III, Part-I of Companies Act as at $31^{\text {st }}$ March, 2024 along with Notes to accounts:

Vikalp Ltd.

Balance Sheet as at $31^{\text {st }}$ March, 2024

Particulars	Note No.	$31-03-2024$ (₹)	$31-03-2023$ (₹)
I. Equity and Liabilities
(1) Shareholders Funds
(a) Share capital	1	59,60,000	50,00,000

‘Notes to accounts’ as at $31^{\text {st }}$ March, 2023:

Note	Particulars	$31-3-2023$ (₹)
No.
1.	Share Capital :
	Authorised capital
	9,00,000 equity shares of ₹ 10 each	90,00,000
	Issued capital :
	5,00,000 equity shares of ₹ 10 each	50,00,000
	Subscribed capital :
	Subscribed and fully paid up
	5,00,000 equity shares of ₹ 10 each	50,00,000
	Subscribed but not fully paid up	Nil
	50,00,000

‘Notes to accounts’ as at $31^{\text {st }}$ March, 2024:

Note	Particulars	$31-3-2024$ (₹)
No.
1.	Share Capital :
	Authorised capital
	9,00,000 equity shares of ₹ 10 each	90,00,000
	Issued capital :
	6,00,000 equity shares of ₹ 10 each	60,00,000
	Subscribed capital :
	Subscribed and fully paid up
	5,80,000 equity shares of ₹ 10 each	58,00,000
	Subscribed but not fully paid up
	20,000 equity shares of ₹ 10 each,
	fully called up	2,00,000
	Less : calls in arrears
	20,000 equity shares @ ₹ 2 per share	40,000
	59,60,000

1. The total face value of equity shares issued during the year 2023-2024 was :
2. The number of shares on which the called up amount was not received were :
3. On $1^{\text {st }}$ April, 2024 Vikalp Limited forfeited all the shares on which the called up amount was not received. On forfeiture, ‘Share Capital Account’ will be debited by :
4. On forfeiture, ‘Share Forfeiture Account’ will be credited with :
5. If all the forfeited shares are reissued at ₹ 8 per share fully paid up, the amount credited to ‘Capital Reserve A/c’ will be :
6. If the forfeited shares are reissued at the minimum permissible price, the amount credited to ‘Capital Reserve Account’ will be :

Hint:

When analysing share capital notes: - Compare Issued/Subscribed figures year-on-year to find new issues. - 'Subscribed but not fully paid' section reveals shares with potential arrears. Arrears amount / No. of shares gives arrears per share. - Forfeiture: Cap Dr with Called-up; Forfeiture Cr with Amount Received. - Reissue: Calculate discount (Paid-up - Reissue Price). Max Discount = Forfeited Amount. Gain = Forfeited - Discount. Transfer total gain on reissued shares to Capital Reserve.

Answer 1

Analysis of Vikalp Limited's Share Capital

Given Information:

• Authorized Capital: 9,00,000 shares of ₹10 each
• Issued Capital (31-03-2023): 5,00,000 shares of ₹10 each (₹50,00,000)
• Issued Capital (31-03-2024): 6,00,000 shares of ₹10 each (₹60,00,000)
• Subscribed Capital (31-03-2024):
  • 5,80,000 shares fully paid up: ₹58,00,000
  • 20,000 shares fully called up, but with calls in arrears:
    • Called up amount: ₹2,00,000
    • Calls in Arrears: ₹40,000 (20,000 shares @ ₹2 per share)
• Share Capital (31-03-2024): ₹59,60,000 (58,00,000 + 1,60,000)

(i) The total face value of equity shares issued during the year 2023-2024 was:

Issued Capital (31-03-2024) - Issued Capital (31-03-2023) = New issued capital for the year
60,00,000 - 50,00,000 = ₹10,00,000

Answer: (A) ₹10,00,000

(ii) The number of shares on which the called up amount was not received were:

This is given directly as the number of shares in arrears: 20,000 shares.

Answer: (D) 20,000

(iii) On 1st April, 2024 Vikalp Limited forfeited all the shares on which the called up amount was not received. On forfeiture, 'Share Capital Account' will be debited by:

Since the shares are fully called up, the entire face value of the forfeited shares (20,000 shares @ ₹10) will be debited.
20,000 * ₹10 = ₹2,00,000

Answer: (C) ₹2,00,000

(iv) On forfeiture, 'Share Forfeiture Account' will be credited with:

The Share Forfeiture Account is credited with the amount received on the forfeited shares. Since ₹2 per share was not received, the amount received per share is ₹10 - ₹2 = ₹8.
20,000 shares * ₹8/share = ₹1,60,000

Answer: (A) ₹1,60,000

(v) If all the forfeited shares are reissued at ₹8 per share fully paid up, the amount credited to 'Capital Reserve A/c' will be:

The entire balance of shares forfeited account will be transferred to capital reserve account.
₹1,60,000

Answer: (B) ₹1,60,000

(vi) If the forfeited shares are reissued at the minimum permissible price, the amount credited to 'Capital Reserve Account' will be:

The maximum permissible discount on reissue = ₹2 per share (the amount not received initially). Therefore the company will be reissued at ₹8. As a result same answer applies.
₹1,60,000

Answer: (B) ₹1,60,000