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share capital

rama krishnan (12234 Points)

06 May 2017

could anyone educate about share capital authorised capital share premium subscribed capital etc in detail

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CA Rashmi Gandhi (Chartered Accountant) (86275 Points)
Replied 06 May 2017

Authorised Capital is a maximum capital that can be raised by a company.
Issued capital is that part of authorised capital which is issued to public for subscripttion, those which is not issued known as unissued capital.
Subscribed Capital is that part of issued capital which is subscriped by public or others.
Amt that is called by company out of subscribed capital is known as called up.
That amt which is paid by shareholder out of called up capital is paid up share capital.Unpaid amt is calls in arrear.
Company called some amt of shares only at the time of winding up, that is called as Resrve Capital.
When share is issued at price more than face value then such excess is known as share premium.