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Answer Posted / viswanatha
Authorised Capital: The capital which is maximum capital the company can raise in its life time. Hardly any company issues capital which is equal to authorised capital.
Paid up capital: Paid up capital means that capital for which people have actuallypaid money.
Authorised company may be say 1000 shares of Rs. 10/- each.
Company issues 300 shares to people.
People actually pay for only 250 shares (50 being outstanding receivable from people)
Then paid up capital is 250 shares * 10 rupees 2500 rupees.
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