Company Accounts

Share Capital

Easy

common

Match List-I with List-II

List–I List–II
(A) Authorized capital (I) Mentioned in Prospectus.
(B) Issued capital. (II) Mentioned in Memorandum of Association.
(C) Subscribed capital. (III) called up capital–calls in arrears.
(D) Paid up capital. (IV) Capital for which application is received.

Choose the correct answer from the options given below:

List–I	List–II
(A) Authorized capital	(I) Mentioned in Prospectus.
(B) Issued capital.	(II) Mentioned in Memorandum of Association.
(C) Subscribed capital.	(III) called up capital–calls in arrears.
(D) Paid up capital.	(IV) Capital for which application is received.

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (II), (B) - (I), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

✅ Correct Option: 3

Understanding the different types of share capital:

Authorized Capital is the maximum amount of capital a company is authorized to raise as stated in its Memorandum of Association. This is the ceiling limit fixed at the time of incorporation.

Match: (A) → (II)

Issued Capital is the portion of authorized capital that the company offers to the public for subscription. The details of issued capital are mentioned in the Prospectus, which is the document inviting public to subscribe to shares.

Match: (B) → (I)

Subscribed Capital is the part of issued capital for which the public has actually applied. It represents the capital for which applications have been received from investors.

Match: (C) → (IV)

Paid-up Capital is the amount actually received from shareholders. It is calculated as:

$\text{Paid-up Capital} = \text{Called-up Capital} - \text{Calls in Arrears}$

When shareholders fail to pay the called-up amount, the unpaid portion is called "Calls in Arrears", which reduces the paid-up capital.

Match: (D) → (III)

Final Matching: (A) - (II), (B) - (I), (C) - (IV), (D) - (III)

Correct Option: 3

2026: 21 May Shift 1

A holds 300 shares of Rs.10 each on which he has paid Re.1 per share on application. B holds 300 shares of Rs.10 each on which he has paid Re.1 on application and Rs.2 on allotment. C holds 300 shares of Rs.10 each, who has paid Re.1 on applications, Rs.2 on allotment and Rs.3 on first call. They all failed to pay their arrears and the second call of Rs.4 per share as well. All the shares of A, B and C were forfeited and subsequently reissued at Rs.11 per share as fully paid-up. The journal entries for the reissue of shares and transfer to capital reserve would be:

2025: 30 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Under Subscription	(I) Issue of Shares at an amount more than the nominal or par value of shares.
(B) Issue of Shares at a Premium	(II) It is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription.
(C) Over Subscription	(III) The amount so received from the shareholders when shareholders pay a part or the whole of the amount of the calls not yet made.
(D) Calls in Advance	(IV) when applications for more shares of a company are received than the number offered to the public for subscription.

Choose the correct answer from the options given below:

2025: 24 May Shift 1

Match List-I with List-II

List-I	List-II
Allotment of Shares	Journal Entry
(A) For Transfer of Application Money	(I) Share Application A/c Dr. To Bank A/c
(B) For Money Refunded on Rejected Application	(II) Bank A/c Dr. To Share Allotment A/c
(C) For Amount Due on Allotment	(III) Share Application A/c Dr. To Share Capital A/c
(D) For Receipt of Allotment Money	(IV) Share Allotment A/c Dr. To Share Capital A/c

Choose the correct answer from the options given below:

2025: 30 May Shift 2

The following are the features of a Company:

(A) Separate Legal Entity

(B) Unlimited Liability

(D) Common Seal

Choose the correct answer from the options given below:

2023: 20 June Shift 2

When a company reserve a portion of its uncalled capital to be called in the event of winding up, such uncalled capital is known as:-

2026: 13 May Shift 1

Consider the given steps below for Issue of Shares :-

(A) Receipt of Applications

(B) Allotment of Shares

(D) Receipt of Minimum Subscription

Choose the correct sequence of above steps from the options given below:

Solution

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