Moon Company Ltd., New Delhi, has registered its capital as Rs. 50,00,000, divided into 5,00,000 shares of Rs. 10 each. The company offered to the public for subscription 3,00,000 shares of Rs. 10 each, to be received as Rs. 2 on application, Rs. 3 on allotment, Rs. 3 on first call, and the balance on final call,. The company received applications for 3,50,000 shares. The company finalized the allotment of 3,00,000 shares and rejected applications for 50,000 shares. The company did not make the final call. The company received all amounts except on 2,000 shares where first call money has not been received. What will be the Authorised share capital and issued share capital amounts to be shown in the Notes to Accounts of the balance sheet of Moon Company Ltd.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Authorized share capital Rs. 50,00,000 and Issued Share Capital Rs. 30,00,000
Authorised capital is the capital registered in the Memorandum, the most the company may issue. Issued capital is the part of it actually offered to the public for subscription.
Authorised capital = 5,00,000 shares × Rs. 10 = Rs. 50,00,000
Issued capital = 3,00,000 shares × Rs. 10 = Rs. 30,00,000
The applications for 3,50,000 shares do not change the issued capital: the extra 50,000 applications were rejected. The unpaid first call on 2,000 shares and the final call not yet made affect only the called-up and paid-up figures, not the issued capital.
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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