Question

The authorised capital of ₹ 16,00,000 of XYZ Ltd. is divide into 1,60,000 Equity Shares of ₹ 10 each. Out of these shares 80,000 Equity Shares were issued at par to public for subscription. The full nominal value is payable on application. All the shares were subscribed by the public and total amount was paid for Pass necessary journal entries in the books of the company.

Answer 1

Calculation of share capital:

Authorized Capital= Rs.16,00,000 (1,60,000 x 10 )

Issued and subscribed Capital= Rs.8.00,000 (80,000 Shares x Rs.10 each)