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

Vikalp Limited Share Capital Analysis

Data Provided:

• Authorized Capital: 900,000 shares at ₹10 each
• Issued Capital (March 31, 2023): 500,000 shares at ₹10 each (₹5,000,000)
• Issued Capital (March 31, 2024): 600,000 shares at ₹10 each (₹6,000,000)
• Subscribed Capital (March 31, 2024):
  • 580,000 shares fully paid: ₹5,800,000
  • 20,000 shares fully called, with calls in arrears:
    • Called Amount: ₹200,000
    • Calls in Arrears: ₹40,000 (20,000 shares x ₹2 per share)
• Share Capital (March 31, 2024): ₹5,960,000 (₹5,800,000 + ₹160,000)

(i) Total face value of equity shares issued during FY 2023-2024:

Issued Capital (March 31, 2024) - Issued Capital (March 31, 2023) = ₹6,000,000 - ₹5,000,000 = ₹1,000,000

Answer: (A) ₹1,000,000

(ii) Number of shares with unpaid called-up amount:

Directly provided as shares in arrears: 20,000 shares.

Answer: (D) 20,000

(iii) On April 1, 2024, Vikalp Limited forfeited shares with unpaid calls. 'Share Capital Account' will be debited by:

As shares are fully called up, the debit is the full face value of forfeited shares (20,000 shares x ₹10). Calculation: 20,000 * ₹10 = ₹200,000.

Answer: (C) ₹200,000

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

The credit is for the amount received on forfeited shares. Amount not received is ₹2 per share, so amount received is ₹10 - ₹2 = ₹8 per share. Calculation: 20,000 shares * ₹8/share = ₹160,000.

Answer: (A) ₹160,000

(v) If all 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 the Share Forfeiture Account is transferred to the Capital Reserve. Amount: ₹160,000.

Answer: (B) ₹160,000

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

The maximum permissible discount on reissue is ₹2 per share (the amount not received). Therefore, the reissue price is ₹8 per share. This yields the same result as above. Amount: ₹160,000.

Answer: (B) ₹160,000