Arrange the following in the correct sequence:

(A) Called-up capital

(B) Subscribed capital

(C) Issued capital

(D) Paid-up capital

Choose the correct answer from the options given below:

The correct sequence follows the logical progression of share capital from issuance to actual payment:

Issued Capital (C) → This is the portion of authorized capital that a company offers to the public for subscription.

Subscribed Capital (B) → This is the portion of issued capital for which applications have been received and shares have been allotted to investors. It represents what investors have agreed to purchase.

Called-up Capital (A) → This is the portion of subscribed capital that the company has requested shareholders to pay. The company may call the amount in installments (application money, allotment money, calls) rather than demanding the full amount at once.

Paid-up Capital (D) → This is the portion of called-up capital that shareholders have actually paid to the company. In some cases, shareholders may default on payment, so paid-up capital may be less than called-up capital.

The relationship can be understood as: Issued ≥ Subscribed ≥ Called-up ≥ Paid-up

For example, if a company issues 10,000 shares of ₹10 each, but only 8,000 are subscribed, and the company calls ₹6 per share, and shareholders pay ₹5 per share:

• Issued Capital = ₹1,00,000
• Subscribed Capital = ₹80,000
• Called-up Capital = ₹48,000
• Paid-up Capital = ₹40,000

Therefore, the sequence is (C), (B), (A), (D) → Option 4