Presentation of information relating to share capital in the Balance Sheet of a Company.
The prescribed form of the Balance Sheet of a company given in Schedule IV of the Companies Act 1956, requires the description of share capital under following categories.
1. Authorised or Nominal or Registered Capital: It refers to that amount which is stated in the Memorandum of Association as the share capital of the company. This is the maximum limit of capitgl which the company is authorised to issue and beyond which the company cannot issue shares unless the capital clause in the Memorandum is altered
.
2. Issued Capital: It refers to that part of the authorised capital of the company which has actually been offered to the public for subscription.
3. Subscribed Capital: It refers to that part of the issued capital which has actually been subscribed by the public and subsequently allotted to them by the directors of the company.
4. Called up Capital: It refers to that part of the subscribed capital which has been called up by the company for payment.
5. Paid Up Capital: That part of the called-up capital which is actually paid by the shareholders is known as paid-up capital. The sum which is still to be paid is known-as Calls in Arrears.
The prescribed form of the Balance Sheet of a company given in Schedule IV of the Companies Act 1956, requires the description of share capital under following categories.
1. Authorised or Nominal or Registered Capital: It refers to that amount which is stated in the Memorandum of Association as the share capital of the company. This is the maximum limit of capitgl which the company is authorised to issue and beyond which the company cannot issue shares unless the capital clause in the Memorandum is altered
.
2. Issued Capital: It refers to that part of the authorised capital of the company which has actually been offered to the public for subscription.
3. Subscribed Capital: It refers to that part of the issued capital which has actually been subscribed by the public and subsequently allotted to them by the directors of the company.
4. Called up Capital: It refers to that part of the subscribed capital which has been called up by the company for payment.
5. Paid Up Capital: That part of the called-up capital which is actually paid by the shareholders is known as paid-up capital. The sum which is still to be paid is known-as Calls in Arrears.
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