Authorised Capital & Subscribed Capital

Save Share

This query is : Resolved

Daniel Benjamin (Querist)

23 June 2011 Hi experts!

Can any one help understand the terms "Authorised capital" (under that - Equity shares and Preference shares) and "Subscribed capital" (under that - Equity shares and Preference shares)

And Please help me work this out:
[Authorized Share Capital of the Company is Rs. 1,00,000 divided into 10,000 EQUITY SHARES OF Rs. 10/- EACH. The are two Directors in the company and have equal share.]

Break-up of Authorised Capital:
No. of equity shares: 10,000
Total amount of equity share (Rs): 1,00,000
Nominal amount per equity share: ?
No. of preference shares:?
Total amount of preference shares (Rs):?
Nominal amount per preference share:?

Subscribed capital of the company (Rs):?
No. of equity shares:?
Total amount of equity share (Rs):?
Nominal amount per equity share:?
No. of preference shares:?
Total amount of preference shares (Rs):?
Nominal amount per preference share:?

Thanks for your time!

CA Harish Suwalka

CA Harish Suwalka (Expert)

23 June 2011 in simple terms
1. authorized share capital means the maximum amount of capital a company can issue, it's re also called registered capital
2. Subscribed capital: a portion of authorized capital is issued for subscription by the company, and the part of issued capital which is subscribed by public is called, subscribed capital

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now