Match the LIST-I with LIST-II
| LIST-I Classification of Share Capital | LIST-II Categories of Share Capital | ||
|---|---|---|---|
| A. | The authorised capital which is not offered for public subscription and it may be offered for public subscription at a later date. | I. | Issued Capital |
| B. | A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company. | II. | Paid up Capital |
| C. | 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. | III. | Reserve Capital |
| D. | It is that portion of the called up capital which has been actually received from the shareholders. | IV. | Unissued capital |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A - IV, B - III, C - I, D - II
Share capital is classified by how far the money has moved, from what the Memorandum allows to what the company has actually received.
(A) The authorised capital which is not offered for public subscription and it may be offered for public subscription at a later date — this matches (IV) Unissued capital. The company need not issue all its authorised capital at once; the part held back is unissued and stays available for a later issue.
(B) A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company — this matches (III) Reserve Capital. It cannot be called while the company runs; it is kept for the creditors on winding up.
(C) 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 — this matches (I) Issued Capital. It is the part of authorised capital the company has actually offered.
(D) It is that portion of the called up capital which has been actually received from the shareholders — this matches (II) Paid up Capital. It equals called up capital minus calls in arrears.
NCERT (2026-27 edition): |