Arrange the following categories of capital in the correct hierarchical sequence (from largest/first to narrowest):(A) Called-up capital(B) Subscribed capital(C) Issued capital(D) Paid-up capitalChoose the correct answer from the options given below:
- A(A), (B), (C), (D)
- B(A), (C), (B), (D)
- C(B), (A), (D), (C)
- D(C), (B), (A), (D)
Solution & Step-by-step Explanation
The structure of share capital presentation follows this logical downward breakdown:Issued Capital (C): Offered to the public out of Authorised Capital.Subscribed Capital (B): Accepted/applied for by public out of Issued Capital.Called-up Capital (A): The component of subscribed capital demanded by the firm.Paid-up Capital (D): Actual amount cleared/contributed by members against calls.Hence, the right order is (C), (B), (A), (D).