Sunday, 17 November 2013

Share Capital In the Company's Balance Sheet

The prescribed form of the Balance Sheet of a Company given in Schedule VI of Companies Act,1956 requires the description of Share capital under the following categories:

  1. Authorised Capital
  2. Issued Capital
  3. Subscribed Capital
  4. Called up capital
  5. Paid up Capital 

  1. Authorised Capital:  It refers to that amount which is stated in the Memorandum of Association as the Share capital of the Company.The Company is registered with this amount of capital.
  2. Issued Capital: It refers to that part of the authorised capital of the company which as actually been offered to public for subscription.
  3. Subscribed Capital: It refers to that part of the Issued capital which is actually been subscribed by the public.
  4. Called up Capital: It refers to the portion of Subscribed capital which is called upon to pay.  
  5. Paid-up-Capital: it refers to that portion of called up capital which is actually paid by a Shareholders.

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