Company Accounts

Share Capital

Medium

common

Identify the type of Share Capital, which is clearly shown in Notes to Accounts, but not included in the total of Notes to Account under SHARE CAPITAL head

Subscribed and fully paid up Share Capital

Subscribed but not fully paid up Share Capital

Issued Share Capital and Un-issued Share Capital

Registered Share Capital and Issued Share Capital

✅ Correct Option: 4

In the Notes to Accounts under the Share Capital head, Registered (Authorized) Share Capital is disclosed separately at the top for information purposes, but it is not included in the total that appears in the Balance Sheet.

The typical format is:

Authorized/Registered Share Capital:

_____ equity shares of ₹___ each = ₹____

Issued, Subscribed and Paid-up Capital:

_____ equity shares of ₹___ each = ₹____

Only the Issued, Subscribed and Paid-up Capital forms part of the total under Share Capital in the Balance Sheet.

The Registered Capital represents the maximum amount of capital a company is authorized to raise as per its Memorandum of Association. Since it is merely the ceiling limit and not the actual capital raised, it is shown as a note but excluded from the balance sheet total.

Similarly, the difference between Issued Capital and Subscribed Capital (i.e., unsubscribed issued capital) is also disclosed but not included in the total.

Therefore, Option 4 is correct: Registered Share Capital and Issued Share Capital are clearly shown in notes for disclosure purposes, but the balance sheet total only reflects the Subscribed Capital (whether fully paid or not fully paid).

2022: 20 July Shift 1

PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Applications were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorata to remaining applicants. Amount received on allotment is :

2025: 31 May Shift 1

Arrange Categories of Share Capital into correct order-

(A) Subscribed Capital

(B) Authorised Capital

(D) Called up Capital

Choose the correct answer from the options given below:

2025: 22 May Shift 1

Gupta Ltd. issued 1,000 equity shares of Rs. 100 each as fully paid-up, to the vendor, in consideration of the purchase of plant and machinery worth Rs. 1,00,000. Which of the following entry will be recorded in the company's journal for it?

2026: 23 May Shift 2

Amit, a shareholder holding 1,000 shares of Rs. 10 each, did not pay the allotment money of Rs. 4 per share (including a premium of Rs. 2) and the first and final call of Rs. 3. His shares were forfeited after the first and final call. The amount of Share Forfeiture A/c will be:

2025: 15 May Shift 1

What amount will be credited to Equity Share Application Account on February 10, 2024?

2026: 23 May Shift 2

Select the correct statements with regard to accounting for Share Capital from the following:

A. Provisions of 'Table F' authorise the directors to forfeit the shares.

B. The maximum number of members in a private company is 200.

C. The minimum subscription of capital can not be less than 10% of issued capital.

D. Subscribed capital is also called nominal capital.

Choose the correct answer from the options given below:

Identify the type of Share Capital, which is clearly shown in Notes to Accounts, but not included in the total of Notes to Account under SHARE CAPITAL head

Solution

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