question_answer

Batra Ltd is registered with a capital of Rs. 10,00,000 divided into 1,00,000 equity shares of Rs. 10 each. It issued 75,000 equity shares to public for subscription at a premium of 20%. It received applications for 70,000 equity shares. The directors had called the entire nominal value of the shares which was duly received. How will you show the share capital in the balance sheet of Batra Ltd?

Answer:

                                                Balance Sheet (Extract) as at ......

Particulars	Note No.	Amt (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds	1	7,00,000
(a) Share Capital	2	1,40,000
(b) Reserves and Surplus
		8,40,000

Notes to Accounts

	Particulars	Amt (Rs.)
1.	Share Capital
	Authorised 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
2.	Reserves and Surplus
	Securities Premium Reserve	1,40,000