What is the difference between subscribed capital and the called-up capital of a company?

Uncalled capital

The correct answer is option 4- Uncalled capital.

Subscribed capital is the capital that is allotted to the public where as called up capital is that part of subscribed capital that is called by the company to pay. So, the difference between the two called uncalled capital which can be called by the company anytime or when it needs.

Subscribed Capital 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.

Called up Capital 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.

Paid up Capital 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 is that portion of the subscribed capital which has not yet been called up. The company may collect this amount any time when it needs further funds.