Which of the following is not shown under the heading "Share Capital" in a balance sheet? (2024)

Q. Himmat Ltd has authorised share capital of ₹ 50,00,000 divided into 5,00,000 Equity Shares of ₹ 10 each . It has existing issued and paid up capital of ₹ 5,00,000. It further issued to public 1,50,000 Equity Shares at par for subscription payable as under:

On Application:	₹ 3
On Allotment:	₹ 4 and
On Call:	Balance Amount.

The issue was fully subscribed and allotment was made to all the applicants . Call was made during the year and was duly received.
Show share capital of the company in the Balance Sheet of the Company.

The scenario describes the capital structure and transactions of Himmat Ltd, a company with an authorized share capital of ₹50,00,000, divided into 5,00,000 Equity Shares of ₹10 each. The company initially issued and paid up ₹5,00,000 of its authorized share capital.

Later, the company issued an additional 1,50,000 Equity Shares to the public at par value for subscription. The subscription payment was structured as follows:

On Application: ₹3 per share
On Allotment: ₹4 per share
On Call: Balance Amount (remaining amount after Application and Allotment)

All the shares were subscribed to and allotment was made to all the applicants. Subsequently, during the year, the company made a call for the remaining balance amount, which was duly received.

Now, to illustrate the share capital in the Balance Sheet of the Company, we need to break down the different stages of the share issuance and payments:

Authorized Share Capital: ₹50,00,000
Issued and Paid-up Capital (initial): ₹5,00,000
New Shares Issued: 1,50,000 Equity Shares
- Application: ₹3 per share
- Allotment: ₹4 per share
- Balance due on Call: Remaining amount

Here's a step-by-step calculation:

Application: 1,50,000 shares * ₹3 = ₹4,50,000
Allotment: 1,50,000 shares * ₹4 = ₹6,00,000
The balance due on Call: Total Collection - (Application + Allotment) = Balance due Call amount per share = (Remaining Authorized Capital - Issued Capital) / Number of shares issued Remaining Authorized Capital = ₹50,00,000 - ₹5,00,000 = ₹45,00,000 Balance due = ₹45,00,000 - (₹4,50,000 + ₹6,00,000) = ₹34,50,000 Call amount per share = ₹34,50,000 / 1,50,000 = ₹23 per share (Balance amount)

Therefore, the Share Capital in the Balance Sheet will be:

Authorized Share Capital: ₹50,00,000
Issued and Paid-up Capital: ₹5,00,000 (initial) + ₹4,50,000 (Application) + ₹6,00,000 (Allotment) + ₹34,50,000 (Call) = ₹50,00,000

This calculation ensures that the total share capital in the Balance Sheet reflects the authorized capital of the company, duly subscribed, allotted, and paid up by the shareholders.