8/17/2019 Issued Capital,subscribed and paid up capital definitions

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Issued capital:It is part of the authorised or nominal capital which the companyissues for the time beingfor public subscription andallotment. This is computed at face value or nominal value.

Subscribed capital:It is that portion of the issued capital at face value which has beensubscribed or takenup by the subscribers of shares in the company. It isclear that the entire issued capital may or may not besubscribed.Called up capital:It is that portion of the subscribed capital which has been called up ordemanded on theshares by the company e.g., where Rs.5 has beencalled up on each of 100000 shares of a nominal value of Rs.10! each,the called up capital is Rs.5lacs."ncalled capital# It is the total amountnot yet called up or demanded by the company on the sharessubscribed,

which the shareholders are liable to pay as and when called up, e.g., inthe above case, uncalledcapital is Rs.5lacs.Paid-up capital:It is that part of the total called up amount which is actually paidby the shareholders e.g.,out of Rs.5lacs, called up, only $.5lacs getpaid by the subscribers, the paid up capital is Rs.$.5lacs.Unpaid capital:It is the total of the called up capital remaining unpaid,determined by the di%erence between the called up capital and

paid!up capital.Reserve capital:It is that part of the uncalled capital of a company which thecompany has decided byspecial resolution not to call e&cepting in theevent of the company being wound up and thereafter that portion of theshare capital shall not be capable of being called up e&cept in that eventand for that purposeonly.