Capital
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Querist : Anonymous
Querist :
Anonymous
(Querist)
11 December 2012
Difference between Authorized Capital & Subscribed Capital ?
Pankaj Gupta
(Expert)
11 December 2012
Authorised capital is the maximum capital that the co can issue during its lifetime. ie that capital which has been authorised by the registrar.
Subscribed capital is that part which is issued and is subscribed by public.
Subscribed capital is that part which is issued and is subscribed by public.
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Ajay Mishra
(Expert)
11 December 2012
Hi
14. Presentation of the share capital
A company has to disclose its share capital in the various statements and returns viz Annual Return, Balance Sheet, Forms and various applications to be submitted to various authorities from time to time. It has to represent the status of share capital as per requirements, which may be shown as under:
14.1. Authorised
The capital clause of the Memorandum of Association of a company contains description of the authorised share capital. This is the capital with which a company is to be registered originally or the increased authorised share capital as the case may be. The company is required to pay adequate registration fee to the concerned Registrar of Companies.
14.2. Issued
Issued capital is a part of the authorised capital, which is offered for subscription in form of shares of the company. It also includes share capital issued for consideration otherwise than in cash.
14.3. Subscribed
It is a part of the issued share capital which has been subscribed by the public in case of a public limited company and includes shares purchased by the vendors.
14.4. Called up
It is the sum of total amount called on all shares comprised in the issued and subscribed capital. If the full value of the shares is called up on application then the subscribed capital and called up capital will be the same.
14.5. Paid up
This consists of the amount actually paid up or credited as paid up on the shares subscribed. Share premium received on issuance of shares are not considered in the paid up capital and hence, it is separately shown as share premium account in the reserves and surplus.
14.6. Uncalled
Uncalled capital is a part of the subscribed capital which has not been called up but it may be called up in future.
14.7. Reserved
It is that part of uncalled capital which company has decided to call on liquidation of the company and is termed as reserved capital.
14. Presentation of the share capital
A company has to disclose its share capital in the various statements and returns viz Annual Return, Balance Sheet, Forms and various applications to be submitted to various authorities from time to time. It has to represent the status of share capital as per requirements, which may be shown as under:
14.1. Authorised
The capital clause of the Memorandum of Association of a company contains description of the authorised share capital. This is the capital with which a company is to be registered originally or the increased authorised share capital as the case may be. The company is required to pay adequate registration fee to the concerned Registrar of Companies.
14.2. Issued
Issued capital is a part of the authorised capital, which is offered for subscription in form of shares of the company. It also includes share capital issued for consideration otherwise than in cash.
14.3. Subscribed
It is a part of the issued share capital which has been subscribed by the public in case of a public limited company and includes shares purchased by the vendors.
14.4. Called up
It is the sum of total amount called on all shares comprised in the issued and subscribed capital. If the full value of the shares is called up on application then the subscribed capital and called up capital will be the same.
14.5. Paid up
This consists of the amount actually paid up or credited as paid up on the shares subscribed. Share premium received on issuance of shares are not considered in the paid up capital and hence, it is separately shown as share premium account in the reserves and surplus.
14.6. Uncalled
Uncalled capital is a part of the subscribed capital which has not been called up but it may be called up in future.
14.7. Reserved
It is that part of uncalled capital which company has decided to call on liquidation of the company and is termed as reserved capital.
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