Accountancy Part AAccounting for Shares

Authorised capital is the amount of share capital which a company is…

Authorised capital is the amount of share capital which a company is authorised to issue by its:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Memorandum of Association

NCERT (2026-27 edition):
Categories of Share Capital – “… Authorised Capital: Authorised capital is the amount of share capital which a company is authorised to issue by its Memorandum of Association. The company cannot raise more than the amount of capital as specified in the Memorandum of Association. It is also called Nominal or Registered capital.”