# Practical Problem 01

#### SOLUTION:

In the books of Vijay Ltd.
Balance Sheet as on ———————-

 Liabilities Amount Assets Amount Authorised Capital : Cash at Bank 7,98,500 1,50,000 equity shares of ₹10 each 15,00,000 Issued Capital : 1,00,000 equity shares of ₹10 each 10,00,000 Subscribed Capital : 80,000 equity shares of ₹10 each 8,00,000 Called-up Capital : 80,000 equity shares of ₹ 8 each 6,40,000 Paid-up Share Capital : (80,000 equity shares at 8 per shares) 6,40,000 Less: Calls-in-Arrears(500 shares at ₹3 per share) 1,500 6,38,500 Share Premium / Securities A/c(80,000 shares at ₹2 per share) 1,60,000 7,98,500 7,98,500

Working Notes :

= 80,000 × 3 + 80,000  × 2 × 79,500 × 3 + 80,000 × 2

= 2,40,000 + 1,60,000 + 2,38,500 + 1,60,000

= ₹ 7,98,500

(2) Directors have not made final call of ₹ 2 per share means total called-up amount = ₹ 10 – ₹ 2 = ₹ 8

(3) Calls-in-Arrears → on 500 shares at ₹ 3 = ₹ 1,500 of first call

(4) Share premium on 80,000 shares @ ₹ 2 received at allotment stage i.e. share premium amount = 80,000 × ₹ 2 = ₹ 1,60,000