Accountancy Part AAccounting for Shares

Identify the correct sequence for the categories of share capital. (A…

Identify the correct sequence for the categories of share capital.

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

Choose the correct answer from the options given below.

Answer & explanation

Correct answer: option 3

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

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

(B) Authorised Capital — first: the maximum capital the Memorandum of Association allows the company to issue.
(C) Issued Capital — second: the part of the authorised capital actually offered to the public.
(E) Subscribed Capital — third: the part of the issued capital the public has taken up.
(A) Called up Capital — fourth: the part of the subscribed capital the company has asked shareholders to pay.
(D) Paid up Capital — last: the part of the called up capital actually received.

NCERT (2026-27 edition):
Categories of Share Capital

Extract from the NCERT textbook

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