Match List-I with List-II. List-I List-II (A) Nominal Capital (I) Cal…

Match List-I with List-II.

List-I	List-II
(A) Nominal Capital	(I) Called up capital minus calls in arrears
(B) Reserve Capital	(II) Offered to the public
(C) Paid up Capital	(III) Memorandum of Association
(D) Issued Capital	(IV) Called only at the time of winding up

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

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

(A) Nominal Capital — this matches (III) Memorandum of Association. Nominal (authorised) capital is the limit fixed by the Memorandum of Association.

(B) Reserve Capital — this matches (IV) Called only at the time of winding up. It is the part of uncalled capital kept for creditors on winding up.

(C) Paid up Capital — this matches (I) Called up capital minus calls in arrears. It is the part of the called-up amount actually received.

(D) Issued Capital — this matches (II) Offered to the public. It is the part of authorised capital offered for subscription.

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.”

NCERT (2026-27 edition):
Reserve Capital – “A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company.”

NCERT (2026-27 edition):
Paid up Capital – “It is that portion of the called up capital which has been actually received from the shareholders. When the shareholders have paid all the called amount, the called up capital is the same to the paid up capital. If any of the shareholders has not paid amount on calls, such an amount may be called as ‘calls in arrears’. Therefore, paid up capital is equal to the called-up capital minus call in arrears.”

NCERT (2026-27 edition):
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.”