Question:
On 1st April 2023, Khyati Ltd. was formed with an authorised capital of
|20,00,000 divided into 2,00,000 equity shares of |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, |8 per share were called and final
call of |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 |2 per share. All the shares of
Siya and Piya were forfeited after the first call. Prepre the share capital in Balance
Sheet of Khyati Ltd. as per Schedule III, Part I of Companies Act, 2013 and also
prepare ’Notes to Accounts’ for the same.
On 1st April 2023, Khyati Ltd. was formed with an authorised capital of
|20,00,000 divided into 2,00,000 equity shares of |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, |8 per share were called and final
call of |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 |2 per share. All the shares of
Siya and Piya were forfeited after the first call. Prepre the share capital in Balance
Sheet of Khyati Ltd. as per Schedule III, Part I of Companies Act, 2013 and also
prepare ’Notes to Accounts’ for the same.
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When preparing a balance sheet, always include forfeited shares and calls-in-arrears as part of equity adjustments or receivables.
Updated On: Feb 5, 2025
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Top Questions on Accounting for Share Capital
- Following is the extract of the Balance Sheet of Vikalp Ltd. as per Schedule-III, Part-I of Companies Act as at 31st March, 2024 along with Notes to accounts:
% [Balance Sheet Extract & Notes shown in Question] Notes to accounts' as at 31st March, 2023 \& 2024 show changes in Share Capital.
Analysis from Notes:
As at 31-3-2023: Issued \& Subscribed Capital: 5,00,000 equity shares of Rs 10 each, fully paid up = Rs 50,00,000.
As at 31-3-2024: Issued Capital: 6,00,000 equity shares of Rs 10 each. Subscribed: 5,80,000 shares fully paid up (Rs 58,00,000) + 20,000 shares fully called up (Rs 2,00,000) less Calls in Arrears (Rs 40,000 on 20,000 shares @ Rs 2) = Rs 1,60,000. Total Subscribed = Rs 59,60,000.
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