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Arrange Categories of Share Capital into correct order-

(A) Subscribed Capital

(B) Authorised Capital

(C) Issued Capital

(D) Called up Capital

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 1

The correct hierarchical order of share capital categories follows the flow of capital from authorization to actual collection:

Authorised Capital (B) is the maximum capital a company can raise as per its Memorandum of Association. This is the starting point.

Issued Capital (C) is the portion of authorised capital that the company offers to the public for subscription.

Relationship: Issued Capital ≤ Authorised Capital

Subscribed Capital (A) is the portion of issued capital that investors actually apply for and is allotted to them.

Relationship: Subscribed Capital ≤ Issued Capital

Called up Capital (D) is the portion of subscribed capital that the company calls upon shareholders to pay (since shares may be called in installments).

Relationship: Called up Capital ≤ Subscribed Capital


The logical sequence represents the progressive narrowing down of share capital:

Authorised → Issued → Subscribed → Called up

Therefore: (B), (C), (A), (D)

The correct answer is Option 1.

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