ARIHANT NAHAR (CELL : 8949647195)

Company – share capital

1. Tractors India Ltd’ is registered with an authorised capital of Rs. 10,00,000 divided into 1,00,000
equity shares of Rs. 10 each. The company issued 50,000 equity shares at a premium of Rs. 5 per
share. Rs. 2 per share were payable with the application, 8 per share including premium on the
allotment and the balance amount on first and final call. The issue was fully subscribed and all the
amount due was received except the first and final call money on 500 shares allotted to Balaram.
Present the ‘share capital’ in the balance sheet of Tractors India Ltd’ as per Schedule III Part I of the
Companies Act, 2013. Also, prepare notes to accounts for the same.
2. On 1st April, 2012 Vivek Ltd. was formed with an authorised capital of Rs. 1,00,00,000 divided into
2,00,000 equity shares of Rs. 50 each. The company issued prospectus inviting applications for
1,80,000 shares. The issue price was payable as under
On application Rs. 15
On allotment Rs. 20
On call Balance amount
The issue was fully subscribed and the company allotted shares to all the applicants. The company
did not make the call during the year. Show the following.
1. Share capital in the balance sheet of the company as per Schedule III, Part I of the Companies Act,
2013.
2. Also prepare ‘Notes to accounts’ for the same D.
3. The authorised capital of Suhas Ltd is Rs. 50,00,000 divided into 25,000 shares of Rs. 200 each. Out
of these, the company issued 12,000 shares of Rs. 200 each at a premium of 10%. The amount per
share was payable as follows
Rs. 60 on application
Rs. 60 on allotment (including premium)
Rs. 30 on first call and balance on final call.
Public applied for 11,000 shares. All the money was duly received.
Prepare an extract of balance sheet of Suhas Ltd as per Revised Schedule III, Part I of the Companies
Act, 2013 disclosing the above information. Also prepare ‘Notes to accounts’ for the same.
4. Sajag Ltd. has an authorised capital of Rs. 30,00,000 divided into equity shares of Rs. 30 each. The
company invited applications for issuing 70,000 shares. Applications for 68,000 shares were
received. All calls were made and were duly received except the final call of Rs. 10 per share on
5,000 shares. These shares were forfeited.
1. Present the share capital in the balance sheet of the company as per Schedule III of the Companies
Act, 2013.
2. Also prepare ‘Notes to accounts’ for the same.
5. ‘Suvidha Ltd' is registered with an authorised capital of Rs. 10,00,00,000 divided into 10,00,000
equity shares of Rs. 100 each. The company issued 1,00,000 shares for public subscription. A
shareholder holding 100 shares, failed to pay the final call of Rs. 20 per share. His shares were
forfeited. The forfeited shares were reissued at Rs. 90 per share as fully paid-up.
Present 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.
6. India Auto Ltd’ is registered with an authorised capital of Rs. 7,00,00,000 divided into 7,00,000
shares of Rs. 100 each. The company issued 50,000 shares to the vendor for building purchased and
2,00,000 shares were issued to the public. The amount was payable as follows:
On application and allotment — Rs. 20 per share On first call — Rs. 50 per share On second and
final call — Balance
All calls were made and were duly received except on 100 shares held by Rajani, who failed to pay
the second and final call. Her shares were forfeited. Present the ‘share capital’ in the balance sheet of
 ARIHANT NAHAR (CELL : 8949647195)
the company as per Schedule III Part I of the Companies, Act, 2013. Also, prepare ‘notes to
accounts’.
7. On 1st April, 2012, Vishwas Ltd was formed with an authorised capital of Rs. 10,00,000 divided into
1,00,000 equity shares of Rs. 10 each. The company issued prospectus inviting applications for
90,000 equity shares. The company received applications for 85,000 equity shares. During the first
year, Rs. 8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did not
pay the first call of Rs. 2 per share. Shyam’s shares were forfeited after the first call and later on
1,500 of the forfeited shares were reissued at Rs. 6 per share, Rs. 8 called up. Show the following
1. Share capital in the balance sheet of the company as per Revised Schedule III Part I of the
Companies Act, 2013.
2. Also prepare ‘notes to accounts’ for the same.
8. NK Ltd, a truck manufacturing company, is registered with an authorised capital of Rs. 1,00,00,000
divided into equity shares of Rs. 100 each. The subscribed and paid-up capital of the company is Rs.
50,00,000. The company decided to open technical schools in the Jhalawar district of Rajasthan to
train the specially able children of the area. It is planning to provide them employment in its various
production units and industries in the neighbourhood area. To meet the capital expenditure
requirements of the project, the company offered 20,000 shares to the public for subscription. The
shares were fully subscribed and paid. Present the share capital in the balance sheet of the company
as per the provision of Schedule III of the Companies Act, 2013.
9. On 1st April, Kamya Ltd. was formed with an authorised capital of Rs. 40,00,000 divided into
4.00,000 equity shares of Rs. 10 each. The company issued a prospectus inviting applications for
3,80,000 equity shares. The company received applications for 3,60,000 equity shares. During the
first year, Rs. 8 per share were called. Deepti holding 3,000 shares and Divya holding 6,000 shares
did not pay the first call of Rs. 2 per share. Divya’s shares were forfeited after the first call and later
on, 5,000 of the forfeited shares were reissued at Rs. 6 per share, Rs. 8 called up. Show the
following:
1. ‘Share Capital’ in the Balance Sheet of the company as per Schedule III Part-I of the Companies
Act, 2013.
2. Also, prepare ‘Notes to Accounts’.
10.
Balance Sheet (Extract)
Of XYZEE ltd as at 31.03.2024 (as per schedule -III of Companies Act 2013)
Note no. 31.03.2023 31.03.2024
I- Equity & Liabilities
1. Shareholders Funds
a). Share Capital 1 44,90,000 54,90,000
b). Reserves and Surplus 2 2,00,000 3,60,000

Note no.1 (For year ending 31.03.2023)

Share Capital
1). Authorised Share Capital
8,00,000 Equity Shares of Rs. 10 each 80,00,000
2). Issued Share Capital
4,50,000 Equity Shares of Rs. 10 each 45,00,000
3). Called Up Share Capital
a). Called Up and Fully paid
Rs.10 per share on 4,45,000 Equity Shares 44,50,000
b). Called Up and not Fully paid
Rs. 10 per share on 5,000 Equity shares 50,000
Less not paid: Rs. 2 per share on 5,000 Equity shares -10,000 44,90,000
 ARIHANT NAHAR (CELL : 8949647195)
Note no.1 (For year ending 31.03.2024)
Share Capital
1). Authorised Share Capital
8,00,000 Equity Shares of Rs. 10 each 80,00,000
2). Issued Share Capital
5,50,000 Equity Shares of Rs. 10 each 55,00,000
(Out of these 40,000 shares were issued to the vendors as consideration for Capital
asset purchased)
3). Called Up Share Capital
a). Called Up and Fully paid
Rs.10 per share on 5,45,000 Equity Shares 54,50,000
b). Called Up and not Fully paid
Rs. 10 per share on 5,000 Equity shares 50,000
Less not paid: Rs. 2 per share on 5,000 Equity shares -10,000 54,90,000

Note no. 2 - Reserves and Surplus 31.03.2023 31.03.2024

Capital Reserve Nil 40,000
Securities Premium 2,00,000 3,20,000
During the year the company took over the business of Quipa Ltd. with Assets of Rs. 12,00,000/-
and Liabilities of Rs.7,30,000. Purchase consideration was paid in cash and by issue of equity
shares at par. The entire transaction resulted in Capital reserve of Rs.40,000.
Q1. What is the total face value of Shares issued for Cash by the Company during the year 2023-24.
A). Rs.10,00,000
B). Rs. 6,00,000
C). Rs. 9,50,000
D). Rs. 11,20,000
Q2. Shares issued for cash during the year were issued at _______. (assuming they were issued
together)?
A). Rs.10
B). Rs.8
C). Rs.12
D). Rs.11.20
Q3. On April 1, 2024, the company forfeited all the defaulting shares. What amount will appear in
the Share Forfeiture account at the time of forfeiture?
A). Rs.40,000
B). Rs. 50,000
C). Rs.10,000
D). Rs. 60,000
Q4. What will be the number of Issued shares, as on April 1,2024, after the forfeiture of these
shares?
A). 5,45,000 shares
B). 5,50,000 shares.
C). 4,45,000 shares.
D). 5,05,000 shares.
Q5. If 2,000 of the forfeited shares were issued at Rs. 14 per share, what will be the amount of
securities premium and Capital reserve respectively as on April 1, 2024?
A). Rs, 3,20,000, Rs.40,000
B). Rs.3,28,000, Rs.56,000
C). Rs.3,28,000, Rs.80,000
D). Rs.3,20,000, Rs.80,000
 ARIHANT NAHAR (CELL : 8949647195)

Q6. What will be the amount in the "Called up and Fully paid" subhead after the reissue of these
2000 shares?
A). Rs.54,50,000
B). Rs.55,00,000
C). Rs.54,70,000
D). Rs.54,80,000
11.
Balance Sheet (Extract)
Note no. 31.03.2023 31.03.2024
I- Equity & Liabilities
1. Shareholders Funds
a). Share Capital 1 60,00,000 85,00,000
b). Reserves and Surplus 2 - 5,80,000

Note no.1 (For year ending 31.03.2023)

Share Capital
1). Authorised Share Capital
8,00,000 Equity Shares of Rs. 10 each 80,00,000
2). Issued Share Capital
6,00,000 Equity Shares of Rs. 10 each 60,00,000
3). Subscribed Share Capital
6,00,000 Equity Shares of Rs. 10 each 60,00,000
Note no.1 (For year ending 31.03.2024)
Share Capital
1). Authorised Share Capital
8,00,000 Equity Shares of Rs. 10 each 80,00,000
2). Issued Share Capital
8,50,000 Equity Shares of Rs. 10 each 85,00,000
3). Subscribed Share Capital
8,50,000 Equity Shares of Rs. 10 each 85,00,000

Note no. 2 - Reserves and Surplus 31.03.2024

Capital Reserve 80,000
Securities Premium 5,00,000
5,80,000
Shares Issued to Vendors 70,000 shares for a capital asset.
Called-up Share Capital 15 per share on 8,000 shares.
Unpaid Amount 5 per share on 8,000 shares.
(i) What is the total face value of shares issued for cash by the company during the year 2023-24?
(a) ₹ 15,30,000
(b) ₹ 10,50,000
(c) ₹ 14,50,000
(d) ₹25,00,000
(ii) Shares issued for cash during the year were issued together) (assuming they were
(a) 1,80,000
(b) 2,50,000
(c) 1,30,000
(d) 3,60,000
(iii) Shares issued for cash during the year were issued at (assuming they were issued together)
 ARIHANT NAHAR (CELL : 8949647195)
(a) ₹6
(b) ₹7
(c) 8
(d) ₹5
(iv) On 1st April, 2024, the company forfeited all the defaulting shares. What amount will appear in the
share forfeiture account at the time of forfeiture?
(a) ₹ 60,000
(c) ₹ 40,000
(b) ₹80,000
(d) ₹ 20,000
(v) If 3,000 of the forfeited shares were re-issued at 18 per share, what will be the amount of securities
premium and capital reserve respectively as on 1st April, 2024?
(a) ₹ 5,00,000, ₹ 1,10,000
(b) ₹5,10,000, ₹ 1,01,000
(c) ₹5,99,000, ₹ 1,00,000
(d) ₹5,09,000, ₹ 1,11,000
(vi) How much cash was received from the re-issue of 5,000 forfeited shares they were re-issued at 20
per share?
(a) ₹ 40,000
(b) ₹ 50,000
(c) ₹ 60,000
(d) ₹ 1,00,000
Date Particulars L.F. Dr. (Rs.) Cr. (Rs.)
Equity Share Capital A/c Dr.
Securities Premium A/c Dr.
To Calls-in-Arrears A/c
To _________________________
(For 13,000 equity shares of ₹ 50 each
issued at a premium of 8 per share forfeited
for the non-payment of allotment money
(including premium) of 23 and first and
final call of 20 per share were not made)
______________________________ Dr.
To _________________________
To ________________________
(For the forfeited shares reissued at * 55
per share fully paid up)
Share Forfeited A/c Dr.
To Capital Reserve A/c
(For profit on forfeited shares transferred
to capital reserve)
Answer the following questions on the basis of information given above.
(i) How much amount will be credited to share Forfeited Account at the time of forfeiture of
13,000 shares?
(a) 1,95,000
(b) 2,99,000
(c) 3,90,000
(d) 1,04,000
(ii) How much amount will be credited to Calls-in-Arrear at the time of forfeiture of 13,000 shares?
(a) 3,90,000
 ARIHANT NAHAR (CELL : 8949647195)
(b) ₹ 1,04,000
(c) ₹2,99,000
(d) 1,95,000
(iii) At the time of forfeiture of shares what amount will be debited to Equity Share Capital Account?
(a) 1,95,000
(b) ₹3,90,000
(c) ₹ 1,04,000
(d) 2,99,000
(iv) How much amount is received at the time of reissue of forfeited shares?
(a) 6, 50000
(b) ₹65,000
(c) ₹ 3,90,000
(d) 7,15,000
(v) How much amount will be credited to Securities Premium Account at the time of reissue of forfeited
share?
(a) ₹ 65,000
(b) ₹ 6,50,000
(c) ₹1,95,000
(d) ₹ 3,90,000
(vi) How much amount will be transferred to Capital Reserve Account?
(a) 1, 65000
(b) 6,50,000
(c) 1,04,000
(d) 1,95,000
12.
Balance Sheet (Extract)
Note no. 31.03.2023 31.03.2024
I- Equity & Liabilities
1. Shareholders Funds
a). Share Capital 1 22,45,000 27,45,000
b). Reserves and Surplus 2 1,00,000 1,80,000

Note no.1 (For year ending 31.03.2023)

Share Capital
1). Authorised Share Capital
4,00,000 Equity Shares of Rs. 10 each 40,00,000
2). Issued Share Capital
2,25,000 Equity Shares of Rs. 10 each 22,50,000
3) Subscribed Share Capital
(a) Subscribed and Fully paid up
2,22,500 Equity Share of ₹ 10 22,25,000
(b) Subscribed and Not Fully paid up
2,500 Equity Share of 10 25,000
Less Calls in Arrear @2 - 5,000 20,000 22,45,000
Note no.1 (For year ending 31.03.2024)
Share Capital
1). Authorised Share Capital
4,00,000 Equity Shares of Rs. 10 each 40,00,000
2). Issued Share Capital
 ARIHANT NAHAR (CELL : 8949647195)
2,75,000 Equity Share of 10 each 27,50,000
(Issued to Vendors 20,000 shares of 10 each for Assets purchased)
3) Subscribed Share Capital
(a) Subscribed and Fully paid up
2,72,500 Share of Rs. 10 27,25,000
(b) Subscribed and Not Fully paid up
2,500 Equity Share of 10 25,000
Less Calls in Arrear @2 - 5,000 20,000 27,45,000
Note 2 Reserve & Surplus 2023 2024
Capital Reserve ---- 20,000
Securities Premium 1,00,000 1,60,000
During the year company took over the business of Y Ltd. with Assets of₹6,00,000 and liabilities of
3,65,000 by Issue of Equity shares at par. The entire transaction resulted in Capital Reserve of
20,000.
(a) What was the total face value of shares issued by the company during the year 2023-24?
(i) 5,00,000
(ii) 3,00,000
(iii) 4,75,000
(iv) 5,60,000.
(b) Share issued for Cash during the year were issued at ___________ (assuming they were issued
together).
(i) ₹ 10
(ii) ₹8
(iii) 12
(iv) 11-20.
(c) On 1 April 2024 the company forfeited all the defaulting shares. What amount will appear in the
share forfeiture account at the time of forfeiture?
(i) 20,000
(ii) 25,000
(iii) 5,000
(iv) 30,000.
(d) What will be the number of Shares reissued, as on 1 April 2024 after the forfeiture?
(i) 2,77,500
(ii) 2,75,000
(iii) 2,22,500
(iv) 2,52,500.
(e) If 1000 of the forfeited shares were issued at 14 per shares. What will be the amount of securities
premium and capital reserve respectively on April 1, 2024?
(i) 1,60,000 & 20,000
(ii) 1,64,000 & 28,000
(iii) 1,64,000 & 40,000
(iv) 1,60,000 & 40,000.
(f)What will be the amount of subscribed & fully paid after the reissue of these 1000 shares?
(i) 27,25,000
(ii) 27,50,000
(iii) 27,35,000
(iv) 27,40,000