Accountancy Part AAccounting for Shares

Nominal share capital is:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → The maximum amount of share capital which a company is authorised to issue.

NCERT (2026-27 edition):
Test your Understanding – II

Extract from the NCERT textbook

NCERT (2026-27 edition):
Answers to Test your Understanding

Extract from the NCERT textbook

NCERT (2026-27 edition):
Authorised Capital – “… Authorised capital is the amount of share capital which a company is authorised to issue by its Memorandum of Association. The company cannot raise more than the amount of capital as specified in the Memorandum of Association. It is also called Nominal or Registered capital.”