Share capital - unsubscribed capital

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Amit Kumar Sharma (Querist)
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26 November 2012 What is the meaning of unsubscribed capital.

How is it dealt with in accounting of share capital.

Thanks

CA Hardik Bunha

CA Hardik Bunha (Expert)
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26 November 2012 share is not alloted to public/shareholders is a unsubscribed share capital.it is a difference between paid up share capital and authorised share capital.

Hari Beldona

Hari Beldona (Expert)
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26 November 2012 Unsubscribed capital: Less than issued share capital for which no applications have been received yet

Ajay Mishra

Ajay Mishra (Expert)
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26 November 2012 Hi

Un-subscribed capital is a part of capital which is not subscribed by any one at the time of issue of shares.

Amit Kumar Sharma

Amit Kumar Sharma (Querist)
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30 November 2012 at the time of "ISSUE' of capital
or
at the time of "OFFER" of capital

Pls comment
Thanks

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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25 July 2025 Here’s a clear explanation about unsubscribed capital and when it applies:

What is Unsubscribed Capital?
Unsubscribed Capital refers to the portion of the Issued Share Capital (i.e., shares that the company has offered to the public or shareholders) for which no applications have been received.

It is the difference between the Issued Share Capital and the Subscribed Share Capital.

Put simply:

Authorized Capital: Maximum capital company can raise.

Issued Capital: Capital the company actually offers to investors.

Subscribed Capital: Portion of issued capital that investors apply for.

Unsubscribed Capital: Issued capital minus subscribed capital (i.e., shares not applied for).

At What Stage Does Unsubscribed Capital Occur?
At the time of ISSUE/OFFER of shares: When the company offers shares to public or existing shareholders, some may not subscribe (apply) for the shares.

The shares which are offered but not applied for are called unsubscribed shares, and their value forms the unsubscribed capital.

Accounting Treatment of Unsubscribed Capital
Unsubscribed Capital is not recorded in the books because the company has neither received application money nor allotted shares for this portion.

The Balance Sheet shows only the Subscribed and Paid-up Capital.

Unsubscribed Capital is essentially a contingent figure and part of the issued capital but not yet realized.

Summary:
Term Meaning
Authorized Capital Maximum capital company can raise
Issued Capital Capital offered to shareholders
Subscribed Capital Capital applied for by shareholders
Unsubscribed Capital Issued capital - Subscribed capital (not applied for)

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