Rearrange the following items of "Shareholder's funds" in an order as…

The correct answer is Option (3) → E, D, B, C, A

In the Notes to Accounts, share capital is shown from the widest figure to the narrowest, and the forfeited amount is added at the end.

E. Authorised capital — the maximum capital the company may issue, shown first.

D. Issued capital — the part of the authorised capital offered for subscription.

B. Subscribed and fully paid capital — the subscribed shares on which the full amount is paid.

C. Subscribed but not fully paid capital — the subscribed shares on which some amount is still due.

A. Shares forfeited A/c — added to the paid-up capital, last, until the shares are reissued.