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easyMCQCUET Accountancy 2022 30 Aug Shift 22026Accountancy
1 mark

Instructions: Read the passage carefully and answer the following questions 46-50) XYZ Ltd is registered with an authorised capital of Rs. lakh divided into lakh equity shares of Rs. each. The company is in manufacturing of pickles and spices. Due to the increase in demand of packed food in the market they decided to diversify its operation. For this purpose they decided to issue lakh equity share of Rs. each. The company issued equity shares to a vendor to supply the machinery required to manufacture the packed food. Rest of the equity shares were issued to general public for subscription. The application were received for equity shares. Due to undersubscription of equity shares the shares were not issued to public.The following refer to the maximum amount of share capitals issued by a company in its life times except:

  1. A
    Subscribed Capital
  2. B
    Authorised Capital
  3. C
    Nominal Capital
  4. D
    Registered Capital

Solution & Step-by-step Explanation

Authorised, Nominal, and Registered capital all mean the same thing: the maximum amount of capital a company is allowed to issue as per its Memorandum of Association. Subscribed capital is the portion actually subscribed by the public, which is not the maximum limit.

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Instructions: Read the passage carefully and answer the following questions 46-50) XYZ Ltd is registered with an authorised capital of Rs. lakh divided into lakh equity shares of Rs. each. The company is in manufacturing of pickles and spices. Due to the increase in demand of packed food in the market they decided to diversify its operation. For this purpose they decided to issue lakh equity share of Rs. each. The company issued equity shares to a vendor to supply the machinery required to manufacture the packed food. Rest of the equity shares were issued to general public for subscription. The application were received for equity shares. Due to undersubscription of equity shares the shares were not issued to public.The following refer to the maximum amount of share capitals issued by a company in its life times except:
A
Subscribed Capital
B
Authorised Capital
C
Nominal Capital
D
Registered Capital

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