Arrange the following categories of share capital in the correct legal and logical sequence from highest statutory limit down to actual realized funding:(A) Paid up Capital(B) Subscribed Capital(C) Issued Capital(D) Authorised CapitalChoose the correct answer from the options given below:
- A(A), (B), (C), (D)
- B(D), (C), (B), (A)
- C(B), (A), (D), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
The top-down presentation hierarchy of share capital categories is:Authorised Capital (D): The maximum statutory share capital limit specified in the Memorandum of Association.Issued Capital (C): The nominal portion of authorized capital offered to the public for subscription.Subscribed Capital (B): The portion of issued capital applied for and taken up by investors.Paid up Capital (A): The actual component of called-up capital received from shareholders.Hence, the correct sequence is (D), (C), (B), (A).