Accountancy- issued capital

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Querist : Anonymous

Querist : Anonymous (Querist)

24 November 2012 if a company offered 6,000 shares and public applied for 5,500 shares, then what will be the issued capital?

Some books say 6,000 will be issued capital while. PC Tulsian CPT book says 5,500 will be issued capital.

Tulsian's book seems to be right but all the most of the other books say 6,000 will be issued capital.

Please clarify.
Thanks in advance

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 November 2012 6000 shall be the AUTHORISED share capital.

5000 shall be the ISSUED share capital.

Issued share capital means the shares actually ISSUED by the company.

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Amol S Joglekar

Amol S Joglekar (Expert)
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24 November 2012 5500 and not 5000.

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Querist : Anonymous

Querist : Anonymous (Querist)

24 November 2012 This answer seems correct to me, but I received different answer from some other person for the same question.

Please confirm once more.

Regards

Amol S Joglekar

Amol S Joglekar (Expert)
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24 November 2012 Other answer is more accurate. TOEFL wise.(Test of english as a foreign language)

Issued versus subscribed and unsubscribed.

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2012 Suppose the company has authorised capital of 10,000 shares. It offers to the public 6,000 shares but the public applies for 5,000 shares.
As per the above clarification the issued capital would be 6,000. Now chech the following scenario: After sometime if the company >OFFERS< the remaining 5,000 shares then would the issued capital be 11,000 (6,000 offered earlier and 5,000 offered now).

From the above scenario, it seems that the issued capital would be 5,000 in the first case.

Please look into it and clarify.
Thanks

Amol S Joglekar

Amol S Joglekar (Expert)
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26 November 2012 Another test of english. Issued for 1st time. Issued for 2nd time.... and so on. Second time 5000 shares are offerred and not issued... issued is 4000

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2012 But in the first case also 6,000 shares were offered and not issued ?

Please clarify
Thanks

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Amol S Joglekar

Amol S Joglekar (Expert)
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26 November 2012 6000 shares were offerred as well as issued. out of that some were subscribed and soome were unsubscribed.

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2012 Does that mean that 'offered' and 'issued' words are synonymous with regard to share capital ?

Amol S Joglekar

Amol S Joglekar (Expert)
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26 November 2012 Certainly NOT. Any one can be the subset of another one.

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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26 November 2012 Issued Capital would be 6000

Subscribed capital would be 5500 shares

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Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2012 I would like you to refer to PC Tulsian CPT book (page 26.4).

Please let me know if that is incorrect because that thing appears genuine.

Please dont think I am saying you are not right.

Thanks

Amol S Joglekar

Amol S Joglekar (Expert)
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26 November 2012 Division of opinion does not make anybody right or wrong per se. Group is divided in 2 parts is always a good sign for improvement. (This logic fails only at the time of writing examination paper.) For examination whatever that is stated in the STUDY MATERIAL shall be regarded to be MARKS gaining.

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2012 But what is the better option or the more appropriate answer in this case.
Pls refer to PC Tulsian CPT (Page 26.4).
I would appreciate if different people answer my query.

Pls let the querry open for some more responses.

Thanks

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CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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27 November 2012 I would also suggest you to please refer to the definitions of the all such capital and then decide with reference to such definitions. Dont go blindly with any view, only what is given is act is right...

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