How its Possible

Hi

As per my understanging, no. of shares shown in MOA will be treated as paid up capital unless further allotment has not been made by company.

Regards

Rs. 1,00,000/- might be share application money which is not alloted yet !!

Dear Dileep

At the time of incorporation, the provisions of share application will not apply, because the company is not in existence.

Regards

Subscribed capital is basically the proceeds that the promoters/shareholders have “agreed” to pay for the shares. The subscribed capital transforms into paid-up capital when the shareholders actually make the cash payment that they agreed to pay. 

No, it is not correct.

In this case, the paid up capital in the balance sheet must be 1 Cr.divided into 10,00,000 shares.

Because in MOA 10,00,000 shares are shown as subscribed. It is considered as deemed allotment. No further formal allotment in this regard is required.