Home | | Accountancy 12th Std | Divisions of share capital

Company Accounts | Accountancy - Divisions of share capital | 12th Accountancy : Chapter 7 : Company Accounts

Chapter: 12th Accountancy : Chapter 7 : Company Accounts

Divisions of share capital

The share capital of a company is divided into the following categories:

Divisions of share capital

The share capital of a company is divided into the following categories:

(i) Authorised capital

It means such capital as is authorised by the memorandum of association. It is the maximum amount which can be raised as capital. It is also known as registered capital or nominal capital.

(ii) Issued capital

This represents that part of authorised capital which is offered for subscription.

(iii) Subscribed capital

It refers to that part of issued capital which has been applied for and also allotted by the company.

(iv) Called up capital

It refers to that part of subscribed capital which has been called up by the company for payment.

(v) Paid up capital

It is that part of called up capital which has been actually paid by the shareholders.

(vi) Reserve capital

The company can reserve a part of its subscribed capital to be called up only at the time of winding up. It is called reserve capital.


Tags : Company Accounts | Accountancy , 12th Accountancy : Chapter 7 : Company Accounts
Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail
12th Accountancy : Chapter 7 : Company Accounts : Divisions of share capital | Company Accounts | Accountancy


Privacy Policy, Terms and Conditions, DMCA Policy and Compliant

Copyright © 2018-2024 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.