Class 12 Disclosure of Share Capital in Company’s Balance Sheet

Class 12 accounts questions for share capital


1. Hari Aggarbatti Ltd.

Question: Hari Aggarbatti Ltd. was registered with capital of ₹ 50,00,000 divided into 5,00,000 Equity Shares of ₹ 10 each. It issued 1,00,000 Equity Shares to the public for subscription. The shares were subscribed and calls made were received.

Solution:

Particulars ₹
Authorized Share Capital 50,00,000
Issued Share Capital (1,00,000 x ₹ 10) 10,00,000
Subscribed and Fully Paid-up Share Capital 10,00,000

2. Farm Products for Ltd.

Question: Farm Products Ltd. has authorized share capital of ₹ 50,00,000 divided into 5,00,000 Equity Shares of ₹ 10 each. It has existing issued and paid-up capital of ₹ 5,00,000. It further issued 1,50,000 Equity Shares at par for subscription as follows:

  • On Application: ₹ 3
  • On Allotment: ₹ 4
  • On Call: Balance Amount

Solution:

Particulars ₹
Existing Paid-up Share Capital 5,00,000
Issued Share Capital (1,50,000 x ₹ 10) 15,00,000
Total Share Capital 20,00,000

3. Sunstar Ltd.

Question: Sunstar Ltd. has an authorized capital of ₹ 20,00,000 divided into equity shares of ₹ 10 each. The company invited applications for 60,000 shares. Applications were received for 58,000 shares. All calls were made and received except the final call of ₹ 3 on 2,000 shares. These shares were forfeited.

Solution:

Particulars ₹
Authorized Share Capital 20,00,000
Issued Share Capital (58,000 x ₹ 10) 5,80,000
Less: Calls in Arrears (2,000 x ₹ 3) 6,000
Subscribed and Fully Paid-up Share Capital 5,74,000

Final Answer:

Share Capital (Subscribed and Fully Paid-up) = ₹ 5,74,000

Key Notes

  • Authorized Share Capital is the maximum amount of capital a company can issue.
  • Issued Capital is the part of authorized capital issued to shareholders.
  • Subscribed Capital refers to the amount issued and accepted by shareholders.
  • Calls in Arrears occur when shareholders fail to pay the call amount.

References:

- CBSE Class 12 Accountancy Questions
- Topic: Disclosure of Share Capital
- Source: Adjusted for educational purposes.

Comments

Post a Comment

Popular posts from this blog

Class 12th Accounts | Journal Entries for Share Forfeiture and Reissue

Image
Introduction In Class 12th Accounts, understanding share forfeiture and reissue of shares can be tricky. This blog explains two important share-related questions step-by-step, focusing on journal entries, pro-rata allotment, and forfeited shares reissue. Question 1: Petromax Ltd. - Forfeiture and Reissue of Shares Question Summary: Petromax Ltd. issued 2,00,000 equity shares at ₹10 each. Money was payable: ₹4 on application, ₹3 on allotment, and the balance ₹3 on first and final call. Pawan (9,000 shares) failed to pay the first and final call. His shares were forfeited. Ramesh (4,000 shares) paid the call money in advance with allotment. 2/3rd of the forfeited shares were reissued as fully paid, and ₹36,000 was transferred to the Capital Reserve. Step-by-Step Solution ...
Read more

How to Solve Class 12th Accounts share capital

Image
Pro Rata Allotment, Forfeiture, and Reissue of Shares In this article, we will break down a comprehensive Class 12th Accounts problem on share allotment, forfeiture, and reissue step by step. If you’re preparing for exams, this blog will help you understand the journal entries in the books of SaReGaMa Ltd ., ensuring clarity in every step. Problem Overview SaReGaMa Ltd. invited applications for issuing 80,000 equity shares of ₹100 each at a premium of ₹10. Here's the amount payable: On Application: ₹30 On Allotment: ₹30 (including a premium of ₹10) On First Call: ₹30 On Final Call: Balance Additional Details: Applications Received: 1,20,000 shares (oversubscribed by 40,000 shares). Allotment Basis: Pro rata. Excess application money was adjusted against allotment. Defaulters: Dhwani: Allotted 1,600 shares; failed to pay allotment money. Sargam: Applied for 6,000 shares; did not pay the first call money. Forfeiture: Dhwani’s and Sargam’s shares were forfeited immediately after the f...
Read more

Class 12th Accounts: Share Capital Solutions Explained Simply

Image
Class 12th Accounts: Share Capital Solutions Explained Simply In this blog post, we will solve three problems related to Share Capital for Class 12th Accounts . We will explain each step clearly so you can easily understand how to prepare Balance Sheets and handle journal entries . Let's begin! 9. Red Roses Ltd. - Share Capital Calculation Question: Red Roses Ltd. was registered with a capital of ₹25,00,000, divided into 25,000 Equity Shares of ₹100 each. The company issued 15,000 Equity Shares to the public for subscription. The shares were subscribed, and calls were made and received, except for the allotment money of ₹40 on 100 shares held by Parul. The first and final call of ₹20 on 500 shares was also not received. Prepare the Balance Sheet showing Share Capital. Solution: Step 1: Determine the total Share Capital of the company. The total capital is ₹25,00,000, divided into 25,000 shares of ₹100 ea...
Read more