Question

Shivalik Limited was registered with an authorized capital of \rupee10,00,000 divided into equity shares of \rupee10 each. It offered 50,000 equity shares to the public. The amount was payable as follows: On Application: \rupee2 per share On Allotment: \rupee6 per share On First and Final Call: Balance (\rupee2 per share) Additional Information: The issue was fully subscribed. All amounts were duly received except the allotment and first and final call money on 4,000 equity shares. These equity shares were forfeited. Required: Present the Share Capital in the Balance Sheet as per Schedule III, Part I of the Companies Act, 2013, and prepare "Notes to Accounts" for the same. \vspace{0.5cm}

Hint:

While presenting Share Capital, ensure to mention authorized, issued, subscribed (fully paid and not fully paid), and forfeited amounts separately in the Notes to Accounts.

Answer 1

Step 1: Calculation of Share Capital \[ \text{Total Issued Capital} = 50,000 \times \rupee10 = \rupee5,00,000 \] \[ \text{Subscribed Capital (Fully Paid)} = (50,000 - 4,000) \times \rupee10 = \rupee4,60,000 \] \[ \text{Subscribed Capital (Not Fully Paid)} = 4,000 \times \rupee2 = \rupee8,000 \] \[ \text{Forfeited Amount on 4,000 Shares} = 4,000 \times \rupee2 (\text{Application Money Received}) = \rupee8,000 \] Step 2: Presentation in the Balance Sheet \[ \text{Balance Sheet of Shivalik Limited as on 31st March, 2023} \] \begin{center} \begin{tabular}{|l|r|} \hline Particulars & Amount (\rupee)
\hline Equity and Liabilities &
\hline \quad Shareholders' Funds &
\hline \quad \quad Share Capital & 4,68,000
\hline \quad \quad Reserves and Surplus &
\hline Total & 4,68,000
\hline \end{tabular} \end{center} \vspace{0.5cm} Notes to Accounts: \begin{center} \begin{tabular}{|l|r|} \hline Note No. 1: Share Capital & Amount (\rupee)
\hline Authorized Capital: &
1,00,000 Equity Shares of \rupee10 each & 10,00,000
\hline Issued Capital: &
50,000 Equity Shares of \rupee10 each & 5,00,000
\hline Subscribed Capital: &
\quad Subscribed and Fully Paid: &
\quad 46,000 Equity Shares of \rupee10 each & 4,60,000
\quad Subscribed but Not Fully Paid: &
\quad 4,000 Equity Shares of \rupee2 each & 8,000
\hline Forfeited Shares (Amount Received): &
\quad 4,000 Equity Shares forfeited & 8,000
\hline Total & 4,68,000
\hline \end{tabular} \end{center}