Question

A company is registered with an authorized capital of 5000000 rupees divided into 500000 equity shares of 10 rupees each payable as follows: 3 rupees with applications, 3 rupees on the allotment, 2 rupees on the first call, and 2 rupees on second call. The company has issued 250000 shares for subscription by the public of which only 200000 shares have been taken up. The application and allotment money have been received in full. At the date of the balance sheet the first call has been made on 200000 shares and this call has been received in respect of 190000 shares. No second call on any share has been made. Show the different phases of the capital as appearing in the balance sheet.

Answer 1

Look below:

Explanation:

Based on the information provided, let's analyze the different phases of the capital as appearing in the balance sheet:

1. Authorized Capital: The authorized capital of the company is 5,000,000 rupees, divided into 500,000 equity shares of 10 rupees each.

1. Subscribed Capital: The company issued 250,000 shares for subscription by the public, but only 200,000 shares have been taken up. Therefore, the subscribed capital is calculated as the number of shares taken up multiplied by the face value per share. In this case, the subscribed capital is 200,000 shares * 10 rupees per share = 2,000,000 rupees.

1. Called-up Capital: The called-up capital represents the portion of the subscribed capital that the company has demanded from its shareholders. Here, the call money is payable in three installments: 3 rupees with applications, 3 rupees on allotment, and 2 rupees on the first call.

- Application Money: The application money is received in full, which means that 200,000 shares * 3 rupees per share = 600,000 rupees have been received.

- Allotment Money: The allotment money is also received in full. Therefore, 200,000 shares * 3 rupees per share = 600,000 rupees have been received.

- First Call: The first call has been made on 200,000 shares, and it has been received in respect of 190,000 shares. Hence, the amount received for the first call is 190,000 shares * 2 rupees per share = 380,000 rupees.

4. Uncalled Capital: The uncalled capital represents the portion of the subscribed capital that the company has not yet demanded from its shareholders. In this case, the uncalled capital can be calculated as the total subscribed capital minus the amount received for the first call. Therefore, the uncalled capital is 2,000,000 rupees - 380,000 rupees = 1,620,000 rupees.

To summarize, the different phases of capital as appearing in the balance sheet are as follows:

- Authorized Capital: 5,000,000 rupees

- Subscribed Capital: 2,000,000 rupees

- Called-up Capital:

- Application Money: 600,000 rupees

- Allotment Money: 600,000 rupees

- First Call Money: 380,000 rupees

- Uncalled Capital: 1,620,000 rupees

Please note that no information is provided regarding the second call, so the balance sheet does not reflect any amount for the second call money.