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CUET Accountancy 2025 PYQs3 June Shift 1. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 3 June Shift 1

Share Capital

past year questions, Company Accounts, CUET Accountancy 2025 3 June Shift 1

Medium

common

From an accounting point of view, arrange the following share capital of the company in the correct sequence:

(A) Subscribed Capital

(B) Authorized Capital

(C) Called up Capital

(D) Issued Capital

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

The correct sequence of share capital from an accounting perspective follows the logical flow of how share capital moves through different stages:

Authorized Capital comes first - This is the maximum capital a company can raise as stated in its Memorandum of Association. It represents the ceiling limit.

Issued Capital comes next - This is the portion of authorized capital that the company actually offers to the public for subscription. It cannot exceed authorized capital.

Subscribed Capital follows - This is the portion of issued capital for which applications have been received from investors. Subscribed capital ≤ Issued capital.

Called-up Capital comes last - This is the amount that the company has actually called upon shareholders to pay. Companies often issue shares on installment basis (application, allotment, calls), so called-up capital represents what has been demanded so far out of the subscribed amount.

The relationship can be understood as:

Authorized Capital ≥ Issued Capital ≥ Subscribed Capital ≥ Called-up Capital ≥ Paid-up Capital

Each subsequent stage represents a subset or smaller portion of the previous stage. This hierarchical arrangement ensures proper tracking of share capital from authorization to actual collection.

Correct sequence: (B), (D), (A), (C)

Related questions:

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2026: 29 May Shift 1

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