Arrange the following capital in correct order.

A. Subscribed capital

B. Reserve capital

C. Paid up capital

D. Uncalled up capital

E. Called up capital

Choose the correct answer from the options given below:

A, E, C, D, B

The correct answer is option (2) : A, E, C, D, B

The following categories of capital in correct sequence is as follows-

* 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. It may be noted that ultimately, the subscribed capital may be equal to or less than issued capital. In case the number of shares subscribed is less than what is offered, the company allots only the number of shares for which subscription has been received. In case it is higher than what is offered, the allotment will be equal to the offer. In other words, the fact of oversubscription is not reflected in the books.

* 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. The company may decide to call the entire amount or part of the face value of the shares, For example, if the face value (also called nominal value) of a share allotted is Rs. 10 and the company has called up only Rs. 7 per share, in that scenario, the called up capital is Rs. 7 per share. The remaining Rs. 3 may be collected from its shareholders as and when needed.

* Paid up Capital: It is that portion of the called up capital which has been actually received from the shareholders. When the shareholders have paid all the called amount, the called up capital is the same to the paid up capital. If any of the shareholders has not paid amount on calls, such an amount may be called as ‘calls in arrears’. Therefore, paid-up capital is equal to the called-up capital minus call in arrears.

* Uncalled Capital- The portion of Subscribed Capital which has not yet been called up by the company is called "Uncalled up capital." It represents the potential future liability of shareholders to fulfill their commitment to pay for the shares.

* Reserve Capital- It is that portion of the uncalled up capital that has been called up only in case of winding up.