Match the following.
| LIST 1 | LIST 2 |
| (A) Authorised Capital | (I) A portion of uncalled share capital will be called at the time of winding up |
| (B) Reserve Capital | (II) Maximum amount of share capital a company could raise during its life time |
| (C) Issued Capital | (III) Capital issued to public for subscription |
| (D) Subscribed but not fully paid capital | (IV) Amount called up and received but not fully |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(II), (B)-(I), (C)-(III), (D)-(IV)
Each kind of share capital is a part of the one before it:
(A) Authorised Capital — this matches (II) Maximum amount of share capital a company could raise during its life time. It is the ceiling fixed by the Memorandum of Association.
(B) Reserve Capital — this matches (I) A portion of uncalled share capital will be called at the time of winding up. The company keeps it back for creditors on winding up.
(C) Issued Capital — this matches (III) Capital issued to public for subscription. It is the part of authorised capital actually offered.
(D) Subscribed but not fully paid capital — this matches (IV) Amount called up and received but not fully. Shares are called up only in part, or some calls remain unpaid.
NCERT (2026-27 edition): NCERT (2026-27 edition):
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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