Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

RST Ltd. has an authorised capital of ₹10,00,000, but has not issued 25% portion of this capital to the public. According to the Companies Act, 2013, what is this 25% portion of capital called?

Options:

Unauthorised Capital

Unsubscribed Capital

Unissued Capital

Uncalled Capital

Correct Answer:

Unissued Capital

Explanation:

The correct answer is option 3- Unissued Capital.

According to the Companies Act, 2013, the 25% portion of the capital is called Unissued Capital.

The authorised capital which is not offered for public subscription is known as ‘unissued capital’. Unissued capital may be offered for public subscription at a later date.