Question

Lennova Ltd. has authorised share capital of ₹ 1,00,00,000 divided into 1,00,000 Equity Shares of ₹ 100 each. It has existing issued and paid up capital of ₹ 25,00,000. It further issued to public 25,000 Equity Shares at a premium of 20% for subscription payable as under:
On Application: ₹ 30
On Allotment: ₹ 60 and
On Call: Balance Amount.
The issue was fully subscribed and allotment was made to all the applicants. The company did not make the call during the year.
Show share capital of the company in the Balance Sheet of the Company.

Answer 1

Calculation of share capital:  

Share capital= No of shares x face value

                     = 100000 x 10 0

                     = Rs 1,00,00,000

Called up share capital= No of shares x called up price

                                      = 25000 x 70

                                      = Rs 17,50,000