The authorised capital of Sarang Ltd. is Rs 1,20,00,000 divided into 12,00,000 shares of 10 each. Ow
these,company issued 8,00,000 shares of Rs 10 each at a premium of 20%. The amount per share was payable as follows :
On Application Rs 2
On Allotment Rs 6 (including premium)
On First Call Rs 2
On Final Call Balance
Public applied for 7,80,000 shares. All the money was duly received. Prepare an extract of Balance Sheet
of Sarang Ltd as per Schedule III, Part 1 of the Companies Act, 2013, disclosing the above information. Also prepare 'Notes to Accounts for the same.
Answers
Answer :
Balance Sheet of Sarang Limited at the end of the year
Particulars Notes to A/c Amount
I) Equity and liabilities
a) Shareholders Fund
i) Share Capital 1 78,00,000
ii) Reserve and Capital 2 15,60,000
Total 93,60,000
II) Assets
a) Cash and Cash Equivalents 93,60,000
Notes To Account
Notes to A/c Particulars Amount
1. Share Capital
Authorized share Capital 1,20,00,000
Issued Capital (8,00,000 × 10) 80,00,000
Subscribed Capital (7,80,000 × 10) 78,00,000
2. Reserve and Surplus
(7,80,000 × 2) 15,60,000
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Balance sheet -
A balance sheet is a financial statement that contains details of a company's assets or liabilities at a specific point in time.
Type of balance sheet -
A typical balance sheet contains three core components: assets, liabilities, and shareholder equity. Assets: Assets represent all things of value that belong to the company.
Explanation -
Balance Sheet of Sarang Limited at the end of the year
Particulars Notes to A/c Amount
I) Equity and liabilities
a) Shareholders Fund
i) Share Capital 1 78,00,000
ii) Reserve and Capital 2 15,60,000
Total 93,60,000
II) Assets
a) Cash and Cash Equivalents 93,60,000
Notes To Account
Notes to A/c Particulars Amount
1. Share Capital
Authorized share Capital 1,20,00,000
Issued Capital (8,00,000 × 10) 80,00,000
Subscribed Capital (7,80,000 × 10) 78,00,000
2. Reserve and Surplus
(7,80,000 × 2) 15,60,000
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