State the correct order of categories of Share Capital as shown in 'Notes to Accounts' of Balance Sheet of a company.
(A) Subscribed and Fully paid up Capital
(B) Issued Capital
(C) Subscribed but not fully paid up Capital
(D) Authorised Capital
(E) Share forfeited Account
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (D), (B), (A), (C), (E)
The Notes to Accounts show share capital from the widest to the narrowest category, and then add the forfeited amount:
(D) Authorised Capital — the maximum capital allowed by the Memorandum of Association.
(B) Issued Capital — the part of authorised capital offered to the public.
(A) Subscribed and Fully paid up Capital — the subscribed shares on which the full amount is paid.
(C) Subscribed but not fully paid up Capital — the subscribed shares on which some amount is still unpaid.
(E) Share forfeited Account — added at the end to the paid-up capital until the forfeited shares are reissued.
NCERT (2026-27 edition):
NCERT (2026-27 edition): |
