Accountancy Part AAccounting for Shares

Which of the following is also known by the name of the authorised ca…

Which of the following is also known by the name of the authorised capital of the company?

(A) Nominal Capital

(B) Subscribed Capital

(D) Registered Capital

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A) and (D) only

Authorised capital is the maximum share capital a company may issue, as fixed by its Memorandum of Association. It is also called nominal or registered capital. Issued capital and subscribed capital are only parts of it: the part offered to the public and the part the public has taken up.

NCERT (2026-27 edition):
Categories of Share Capital – “… Authorised Capital: Authorised capital is the amount of share capital which a company is authorised to issue by its Memorandum of Association. The company cannot raise more than the amount of capital as specified in the Memorandum of Association. It is also called Nominal or Registered capital.”