Answer Posted / kcn

Share Capital: It means the capital raised by the issue of
shares. The Amount invested by the shareholders towards the
face value of shares is collectively known as share
capital. It can be divided into Three Categories:

1) Authorized Capital
2) Issued Capital
3) Subscribed Capital


Authorized Capital: This is the maximum limit of company
which is authorize to raise and beyond which company cannot
raise unless the capital clause in the memorandum is
altered in accordance to the provision of companies act
1956.

Issued Capital: An Issued capital refers to nominal value
of that part of authorized capital which has been
subscribed for by the signatories to the Memorandum of
Association or allotted for cash or for consideration other
than cash or allotted as bonus share.

Subscribed Capital: Subscribed Capital refers to the paid-
up value of the issued capital.

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