Arrange Categories of Share Capital into correct order. (A) Subscribe…

Arrange Categories of Share Capital into correct order.

(A) Subscribed Capital

(B) Authorised Capital

(D) Called up Capital

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → (B), (C), (A), (D)

Each category of share capital is a part of the one before it.

(B) Authorised Capital — the maximum share capital the company may issue under its Memorandum of Association.

(C) Issued Capital — the part of the authorised capital actually offered to the public.

(A) Subscribed Capital — the part of the issued capital the public has taken up.

(D) Called up Capital — the part of the subscribed capital the company has asked the shareholders to pay.

NCERT (2026-27 edition):
Categories of Share Capital – “… Authorised Capital: Authorised capital is the amount of share capital which a company is authorised to issue by its Memorandum of Association.”

NCERT (2026-27 edition):
Categories of Share Capital – “… Issued Capital: It is that part of the authorised capital which is actually issued to the public for subscription including the shares allotted to vendors and the signatories to the company’s memorandum.”

NCERT (2026-27 edition):
Categories of Share Capital – “… Subscribed Capital: It is that part of the issued capital which has been actually subscribed by the public.”

NCERT (2026-27 edition):
Categories of Share Capital – “… Called up Capital: It is that part of the subscribed capital which has been called up on the shares, i.e., what the company has asked the shareholders to pay.”