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?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹29,96,800
Each share: application ₹3, allotment ₹5 (₹3 capital + ₹2 premium), two calls of ₹2 each. Rama paid application and allotment on her 800 shares (her excess application money covered part of allotment) but not the calls.
Shares fully paid = 3,00,000 − 800 = 2,99,200
Subscribed and fully paid capital = 2,99,200 × ₹10 = ₹29,92,000
Share Forfeiture A/c = 800 × (₹3 + ₹3) = ₹4,800 (premium already received stays in Securities Premium)
Share Capital in the Balance Sheet = ₹29,92,000 + ₹4,800 = ₹29,96,800
The figure of ₹29,92,000 leaves out the forfeited amount, which the Balance Sheet adds to paid-up capital under Share Capital.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
NCERT (2026-27 edition): |
