Arrange the following categories of capital in correct sequence. (A)…

Arrange the following categories of capital in correct sequence.

(A) Issued Capital
(B) Subscribed Capital
(C) Authorised Capital
(D) Called up Capital
(E) Paid up Capital

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → (C), (A), (B), (D), (E)

Each category of share capital is a part of the one before it, so they fall in order from the largest to the smallest.

(C) Authorised Capital — the maximum share capital the company may issue, as stated in its Memorandum of Association. It comes first.

(A) Issued Capital — the part of the authorised capital actually offered to the public for subscription.

(B) Subscribed Capital — the part of the issued capital the public actually takes up.

(D) Called up Capital — the part of the subscribed capital the company has asked shareholders to pay.

(E) Paid up Capital — the part of the called up capital actually received; it comes last.

Sequence: Authorised → Issued → Subscribed → Called up → Paid up, that is, (C), (A), (B), (D), (E).

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):
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.”

NCERT (2026-27 edition):
Subscribed Capital – “… It is that part of the issued capital which has been actually subscribed by the public. When the shares offered for public subscription are subscribed fully by the public the issued capital and subscribed capital would be the same.”

NCERT (2026-27 edition):
Called up Capital – “… It is that part of the subscribed capital which has been called up on the shares, i.e., what the company has asked the shareholders to pay.”

NCERT (2026-27 edition):
Paid up Capital – “… It is that portion of the called up capital which has been actually received from the shareholders.”