Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

Arrange the following in the correct sequence:

(A) Called-up capital
(B) Subscribed capital
(C) Issued capital
(D) Paid-up capital

Choose the correct answer from the options given below:

Options:

(A), (B), (C), (D)

(A), (C), (B), (D)

(B), (A), (D), (C)

(C), (B), (A), (D)

Correct Answer:

(C), (B), (A), (D)

Explanation:

The correct answer is Option (4) → (C), (B), (A), (D)

(C) Issued capital. Issued capital comes first as it is the part of authorized capital that is offered to the public for subscription.
(B) Subscribed capital.  Subscribed capital is the portion of issued capital that investors actually agree to buy.
(A) Called-up capital. Called-up capital is that part of subscribed capital which the company asks shareholders to pay.
(D) Paid-up capital. Paid-up capital is the amount of called-up capital that shareholders have actually paid to the company.