Adya Ltd. issued 3,00,000 Equity Shares of ₹10 each at a premium of ₹2 per share, payable as: Application - ₹3, allotment - ₹5, Balance in two calls of equal amount. Applications were received for 4,00,000 shares and pro-rata allotment was made to all the applicants. The excess application money was adjusted towards allotment. Rama who was holder of 800 shares failed to pay both the calls and her shares were forfeited after final call.

What amount will be shown in Balance Sheet of the company as Share Capital?

₹ 29,96,800

The correct answer is Option 1 - ₹ 29,96,800.

Applications issued = 300000 shares
Applications received = 400000 shares
Application per share = ₹3
Allotment per share = ₹5 (including premium)
Without premium allotment per share = 5- 2 = ₹3
Till allotment all money is received.
300000 SHARES x ₹6
= ₹1800000
This amount transferred to share capital account for the allotment and application money.

Now lets calculate the call money-

Call amount per share = 10 - 3 - 3
                                 = ₹4 both call

Money due = 300000 x 4
                = ₹1200000

On 800 shares both calls are not received
Calls in arrears = 800 x 4
                       = ₹3200

Money received on calls = 1200000 - 3200
                                   = ₹1196800
This amount will be transferred to share capital account for the call money.

Total amount transferred to share capital A/c = ₹1800000 + ₹1196800
                                                                 = ₹2996800.