In what condition the amount is shown under the head of 'Subscribed and Fully Paid up Share Capital' in Balance Sheet of a Company-

The term "Subscribed and Fully Paid up Share Capital" can only be shown in the Balance Sheet when shares are completely paid for by shareholders.

For shares to be considered Fully Paid up, two conditions must be satisfied:

1. The entire amount on shares must be called up by the company
2. All shareholders must have paid their dues (no calls in arrears)

Analyzing the options:

Option 1 - If calls in arrears exist, it means some shareholders haven't paid the called amount. The shares cannot be termed as "fully paid up" even if fully called.

Option 2 - When shares are fully called up (entire face value demanded) AND no calls in arrears exist (all shareholders have paid), the shares qualify as "Fully Paid up Share Capital".

Option 3 - Even without arrears, if shares are only partly called up (say ₹8 called on ₹10 share), the remaining ₹2 is still uncalled. These shares are not fully paid up.

Option 4 - Neither fully called nor fully paid. Cannot be shown as fully paid up capital.

The amount shown under "Subscribed and Fully Paid up Share Capital" represents the actual amount received from shareholders against the face value of shares. This is only possible when 100% of share value is called and 100% of called amount is received.

Correct Option: 2