Question

Shri Ganga Ltd. was registered with an authorised capital of ₹ 7,00,000 divided into equity shares of ₹ 10 each. It offered to the public for subscription 50,000 equity shares. The amount was payable as follows:
\text{On application : ₹ 4 \text{ per share}
\text{On allotment} : ₹ 4 \text{ per share}
\text{On first and final call} : \text{Balance}.}
The issue was fully subscribed. All the amounts were duly received except the first and final call money on 4,000 equity shares. Show the Share Capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare ‘Notes to Accounts’ for the same.

Hint:

For share capital, ensure to break down the transactions at each stage: application, allotment, and calls. Maintain proper disclosure as required by Schedule III.

Answer 1

The share capital is presented as follows:\[\text{Share Capital:} \quad ₹ 7,00,000 \quad \text{comprising} \quad 50,000 \quad \text{equity shares of} \quad ₹ 10 \quad \text{each}.\] Journal Entries: (i) On application: \begin{center} \begin{tabular}{|l|c|c|} \hline Particulars & Dr Amount (₹) & Cr Amount (₹)
\hline Bank A/c Dr & 2,00,000 &
To Share Application A/c & & 2,00,000
\hline \end{tabular}\end{center} (ii) On allotment: \begin{center} \begin{tabular}{|l|c|c|} \hline Particulars & Dr Amount (₹) & Cr Amount (₹)
\hline Share Application A/c Dr & 2,00,000 &
To Share Allotment A/c & & 2,00,000
\hline \end{tabular}\end{center} (iii) On call: For the final call on 46,000 shares: \begin{center} \begin{tabular}{|l|c|c|} \hline Particulars & Dr Amount (₹) & Cr Amount (₹)
\hline Share Allotment A/c Dr & 1,84,000 &
To Share Capital A/c & & 1,84,000
\hline \end{tabular}\end{center}