East India Hotels Ltd. was registered with authorised capital of ₹ 25,00,000 divided into 2,50,000 Equity Shares of ₹ 10 each. It issued 1,50,000 Equity Shares to public for subscription
East India Hotels Ltd. was registered with authorised capital of ₹ 25,00,000 divided into 2,50,000 Equity Shares of ₹ 10 each. It issued 1,50,000 Equity Shares to public for subscription. The shares were subscribed and calls were made and received. First and final call of ₹ 3 was not made. Paresh holder of 5,000 shares paid the call money along with the allotment money.
Prepare Balance Sheet of the company showing Share Capital.
[Ans.: Subscribed But Not Fully Paid-up Capital – ₹ 10,50,000; Calls-in-Advance – ₹ 15,000.]
Anurag Pathak Answered question September 8, 2024
Solution:-
Notes:-
As Question only ask to show share capital in the Balance Sheet. Call in Advance of Presh (5,000 x 3 = ₹ 15,000) is not shown in the notes to accounts.
We show the Calls-In-Advance in the Equity and Liabilities part of the Balance Sheet under the head Current Liabilities and sub-head Other Current Liabilities
Anurag Pathak Changed status to publish September 8, 2024
