Match List-I with List-II. LIST I LIST II (A) Authorized capital (I)…

Match List-I with List-II.

LIST I	LIST II
(A) Authorized capital	(I) Mentioned in Prospectus
(B) Issued capital	(II) Mentioned In Memorandum Of Association
(C) Subscribed capital	(III) Called up capital - calls in arrears
(D) Paid up capital	(IV) Capital for which application is received

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A) - (II), (B) - (I), (C) - (IV), (D) - (III)

Share capital is classified by how far it has moved from the amount allowed to the amount received.

(A) Authorized capital — this matches (II) Mentioned In Memorandum Of Association. It is the maximum capital the company may issue, as fixed by its Memorandum of Association.

(B) Issued capital — this matches (I) Mentioned in Prospectus. It is the part of the authorised capital offered to the public, which is done through the prospectus.

(C) Subscribed capital — this matches (IV) Capital for which application is received. It is the part of the issued capital actually applied for (subscribed) by the public.

(D) Paid up capital — this matches (III) called up capital - calls in arrears. It is the part of the called-up capital actually received, that is called-up capital less calls in arrears.

NCERT (2026-27 edition):
Share Capital of a Company – “… Authorised Capital: Authorised capital is the amount of share capital which a company is authorised to issue by its Memorandum of Association.”

NCERT (2026-27 edition):
Share Capital of a Company – “… Issued Capital: It is that part of the authorised capital which is actually issued to the public for subscription including the shares allotted to vendors and the signatories to the company’s memorandum.”

NCERT (2026-27 edition):
Share Capital of a Company – “… Subscribed Capital: It is that part of the issued capital which has been actually subscribed by the public.”

NCERT (2026-27 edition):
Share Capital of a Company – “… 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.”