Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Financial Statements of a Company

Question:

What is the correct sequence of types of capital in company's Balance Sheet while preparing notes to accounts?

A. Issued Capital
B. Subscribed and fully paid up Capital
C. Share forfeited Balance
D. Authorised Capital
E. Subscribed but not fully paid up capital

Choose the correct answer from the options given below:

Options:

C, B, D, E, A

D, A, B, E, C

A, B, C, D, E

B, A, D, E, C

Correct Answer:

D, A, B, E, C

Explanation:

The correct answer is option 2- D, A, B, E, C.

D) Authorised Capital - The maximum amount of share capital that a company is allowed to issue.

A) Issued Capital - The portion of authorised capital that has been offered to shareholders.

B) Subscribed and Fully Paid-up Capital - The part of issued capital that shareholders have fully paid for.

E) Subscribed but Not Fully Paid-up Capital - The portion of issued capital that shareholders have subscribed to but not fully paid.

C) Share Forfeited Balance - The amount related to shares that have been forfeited due to non-payment by shareholders.