KP Ltd. was registered with an authorised capital of Rs.5,00,000 divided into 50,000
equity shares of Rs.10 each. The company decided to offer to the public for subscription,
30,000 equity shares of Rs.10 per share each at a premium of Rs.10 per share. Applications
for 35,000 shares were received and allotment was made on pro rata basis. All calls were
made and duly received except the final call of Rs.2 per share on 1,000 shares. Show the
share capital in the balance sheet of KP Ltd. as per Schedule Ill of Companies Act, 2013.
Also prepare notes to accounts.
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JOURNAL ENTRIES IN THE BOOKS OF KP LTD.
Explanation:
As the per-share value for application, allotment or calls have not been defined in the question, therefore the amount received or transferred to Share Capital A/c can't be ascertained.
Entries will be mostly as shown in the image below, there can only be a change in the Securities Premium Reserve Entry as it hasn't been told in the question at which stage premium is to be included. Adjust the amount or value at different stages according to the per-share value.
REFER TO THE IMAGE FOR THE ANSWER.
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