Match List-I with List-IIList-I (Capital Type)List-II (Definition/Characteristic)(A) Authorised Capital(I) Only available to creditors at the time of winding up of a company(B) Issued Capital(II) The amount of capital that a company can raise in its life-time(C) Subscribed Capital(III) Capital that is issued to the public for subscription(D) Reserve Capital(IV) May be equal to or less than issued capitalChoose the correct answer from the options given below:
- A(A) - (II), (B) - (III), (C) - (IV), (D) - (I)
- B(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- C(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Let's break down the types of share capital:Authorised Capital: The maximum amount of capital a company is legally permitted to raise during its lifetime (II)Issued Capital: The part of authorised capital offered to the public for subscription (III)Subscribed Capital: The portion of issued capital actually taken up by subscribers, which can be equal to or less than issued capital (IV)Reserve Capital: The part of uncalled capital that can only be called up during the event of liquidation/winding up to satisfy creditors (I)Matches: (A) - (II), (B) - (III), (C) - (IV), (D) - (I).