Which of the following is not classified as a category of share capital of the company?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Unsubscribed Capital
From the accounting point of view, share capital is classified by how far it has moved from what the company may raise to what it has received: authorised, issued, subscribed, called up, paid up, uncalled and reserve capital. The part of authorised capital not offered to the public is called unissued capital. “Unsubscribed capital” is not one of these categories.
Option (1) Called up Capital — A category of share capital. The part of subscribed capital the company has asked the shareholders to pay.
Option (2) Uncalled Capital — A category of share capital. The part of subscribed capital not yet called up, which the company may call when it needs funds.
Option (3) Authorised Capital — A category of share capital. The share capital the company is authorised to issue by its Memorandum of Association, the upper limit for every issue.
NCERT (2026-27 edition): |