From an accounting point of view, arrange the following share capital of the company in the correct sequence:
(A) Subscribed Capital
(B) Authorized Capital
(C) Called up Capital
(D) Issued Capital
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (B), (D), (A), (C)
Each category of share capital is a part of the one before it, so they fall in this order from the widest to the narrowest:
(B) Authorized Capital — the maximum capital the Memorandum of Association allows the company to issue.
(D) Issued Capital — the part of the authorised capital offered to the public for subscription.
(A) Subscribed Capital — the part of the issued capital actually taken up by the public.
(C) Called up Capital — the part of the subscribed capital the company has asked the shareholders to pay.
NCERT (2026-27 edition):
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