Question

On 1^st April 2023, Khyati Ltd. was formed with an authorised capital of Rs.20,00,000 divided into 2,00,000 equity shares of Rs.10 each.
The company invited applications for issuing 1,80,000 equity shares. The company received applications for 1,70,000 equity shares.
During the first year, Rs.8 per share were called and the final call of Rs.2 per share has not been made yet.
Siya holding 2,000 shares and Piya holding 4,000 shares did not pay the first call of Rs.2 per share.
All the shares of Siya and Piya were forfeited after the first call.

Hint:

When preparing a balance sheet, always include forfeited shares and calls-in-arrears as part of equity adjustments or receivables.

Answer 1

Journal Entries: \[ \begin{array}{|l|c|c|} \hline \textbf{Particulars} & \textbf{Dr. Amount (Rs.)} & \textbf{Cr. Amount (Rs.)} \\ \hline \text{Bank A/c Dr.} & 13,60,000 & \\ \text{To Equity Share Capital A/c} & & 13,60,000 \\ \text{To Securities Premium A/c} & & 1,70,000 \\ \hline \text{Calls-in-Arrears A/c Dr.} & 12,000 & \\ \text{To Equity Share Capital A/c} & & 12,000 \\ \hline \text{Equity Share Capital A/c Dr.} & 48,000 & \\ \text{To Forfeited Shares A/c} & & 36,000 \\ \text{To Calls-in-Arrears A/c} & & 12,000 \\ \hline \end{array} \]

Balance Sheet of Khyati Ltd. as at 31^st March 2023 (Schedule III, Part I, Companies Act, 2013): \[ \begin{array}{|l|c|} \hline \textbf{Liabilities} & \textbf{Amount (Rs.)} \\ \hline \text{Equity Share Capital} & 14,40,000 \\ \text{Forfeited Shares A/c} & 36,000 \\ \textbf{Total} & \textbf{14,76,000} \\ \hline \textbf{Assets} & \textbf{Amount (Rs.)} \\ \hline \text{Bank A/c} & 13,60,000 \\ \text{Calls-in-Arrears} & 12,000 \\ \textbf{Total} & \textbf{14,76,000} \\ \hline \end{array} \]