Choose the correct statement.

The correct answer is Option (2) → Subscribed Share Capital is shown in Notes to Accounts, and included in the total of Balance Sheet.

Under Schedule III, the face of the balance sheet shows only one line, Share Capital, under Shareholders’ Funds, with a note number. The details (authorised, issued and subscribed capital) are given in the Notes to Accounts.

• Authorised and issued capital are shown in the note for information only; they are not added to the balance sheet total.

• Subscribed capital (less calls in arrears) is the amount carried to the balance sheet, so it is included in the balance sheet total.

In the Dinkar Ltd. balance sheet below, the face shows one line, Share capital (Note 1) Rs. 35,90,000, under Shareholders’ funds. The note shows how that figure is built: subscribed and fully paid capital Rs. 35,50,000, plus the subscribed but not fully paid-up capital net of calls-in-arrears (Rs. 24,000), plus share forfeiture Rs. 16,000. Authorised (Rs. 50,00,000) and issued (Rs. 40,00,000) capital stay in the note only.

Why the other options are incorrect

• Option (1) Subscribed Share Capital is shown in Balance Sheet, and included in the total with Authorised share capital of the company. — Incorrect. Authorised capital is never added to any total; it only shows the limit of capital the company may raise.

• Option (3) Subscribed Share Capital is shown in Balance Sheet, but not included in the total of Balance Sheet. — Incorrect. Its details are in the notes, and the paid-up figure is part of the balance sheet total.

• Option (4) Subscribed Share Capital is shown in Notes to Accounts, but not included in the total of Balance Sheet. — Incorrect. The first half is right, but subscribed capital is the capital the company actually has, so it is included in the total.