Based on following answer the question.
Bharat Ltd. has been registered with the capital as ₹50,00,000 divided into 5,00,000 shares of ₹10 each. 3,00,000 shares of ₹10 each are offered by the company to the public for subscription, amount payable as ₹4 on application, ₹3 on allotment and the balance on call. The company received application for 2,70,000 shares and the company finalised the allotment accordingly. The company did not make the final call. The Company received all money except allotment money on 5,000 shares held by Rahul. His shares were forfeited.
The Nominal Capital of the Bharat Ltd. is _________.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹50,00,000
The nominal capital is the authorised (registered) capital stated in the Memorandum of Association. Bharat Ltd. is registered with a capital of 5,00,000 shares of ₹10 each = ₹50,00,000.
Option (1) ₹30,00,000 — Incorrect. This is the issued capital (3,00,000 shares offered to the public).
Option (2) ₹27,00,000 — Incorrect. This is the subscribed capital (2,70,000 shares).
Option (4) ₹26,50,000 — Incorrect. This is the subscribed capital left after Rahul’s 5,000 shares were forfeited.
NCERT (2026-27 edition): |