Question

1. CCT Ltd., with a nominal capital of 1,00,000 equity shares of 10 each, offered 60,000 shares for public
subscription, payable 4 on application, 4 on allotment and 2 on the first and final call. All the
shares were applied for, duly allotted and the call was made. The cash was duly received.
Give the necessary Journal entries for the above transactions (including cash) and show how the capital
would appear in the company's Balance Sheet.​

Answer 1

Answer:

Share Capital

 

 

Authorised Share Capital

 

 

5,00,000 equity shares of Rs 10 each

50,00,000

 

Issued Share Capital

 

 

5,00,000 equity shares of Rs 10 each

50,00,000

 

Subscribed, Called-up and Paid-up Share Capital

 

 

4,50,000 equity shares of Rs 10 each

45,00,000

 

 

Less: Calls in Arrears (500 shares × Rs 2)

 (1,000)

44,99,000

 

 

 

2

Cash and Cash Equivalents

 

 

Cash at Bank

44,99,000

 

Explanation: