WHEN SUBSCRIBED SHARES ARE FULLY PAID-UP. ACCOUNTING FOR SHARE CAPITAL.


 

ILLUSTRATIONS

 

FIRST CASE

WHEN SUBSCRIBED SHARES ARE FULLY PAID-UP

 

Brave Ltd. is registered with capital of Rs.10,00,000 divided into 1,00,000 Equity Shares of 10 each. It issued 75,000 Equity Shares to the Public for subscription. It received applications for 70,000 Equity Shares. The Directors called Rs.10 per share which was received.

How will Share Capital be shown in the Balance Sheet of Brave Ltd.?

                           Brave Ltd.

         BALANCE SHEET(EXTRACT) as at….

 


Particulars                                          Note no. Amount     Amount

EQUITY AND LIABILITIES

Shareholder’s Funds

Share Capital                                      1            7,00,000

 

 

 

 

 

 

 

 

NOTES TO ACCOUNTS

1.share Capital

Authorized Capital

1,00,000 Equity Shares of Rs.10 Each             10,00,000

 

Issued Capital

75,000 Equity Shares of Rs.10 Each                7,50,000

 

Subscribed Capital

Subscribed And Fully Paid-up

70,000 Equity Shares of Rs.10 Each                7,00,000



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