In case of different types of share capital, match List-I with List-II.
| LIST-I | LIST-II | ||
|---|---|---|---|
| (A) | Authorised Capital | (I) | Portion of issued capital that the public agree to take. |
| (B) | Issued Capital | (II) | Amount of share capital issued as per Memorandum of Association of the company. |
| (C) | Subscribed Capital | (III) | Part of the capital that the company has demanded for payment. |
| (D) | Called-Up Capital | (IV) | Part of authorised capital offered to public. |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A) - (II), (B) - (IV), (C) - (I), (D) - (III)
Each term is one stage between the capital the Memorandum permits and the amount the company has asked its shareholders to pay; each later stage is a part of the one before it.
(A) Authorised Capital — this matches (II) Amount of share capital issued as per Memorandum of Association of the company. The Memorandum fixes the ceiling, and the company cannot raise more than this amount.
(B) Issued Capital — this matches (IV) Part of authorised capital offered to public. The company need not issue its whole authorised capital at once; what it actually offers is its issued capital.
(C) Subscribed Capital — this matches (I) Portion of issued capital that the public agree to take. It is the part of the issued capital the public actually subscribe for, so it can be equal to or less than the issued capital.
(D) Called-Up Capital — this matches (III) Part of the capital that the company has demanded for payment. It is the part of the subscribed capital that the company has asked the shareholders to pay so far.
NCERT (2026-27 edition): |