Question

Study the following case/situation and express your opinion.

Eva Ltd. Company's capital structure is made up of 1,00,000 Equity shares having face value of ₹ 10 each. The company has offered to the public 40,000 equity shares and out of this, the public has subscribed for 30,000 equity shares. State the following in ₹.

1. Authorised capital
2. Subscribed capital
3. Issued capital

Answer 1

1. In the above case, Eva Ltd. Company has 1,00,000 equity shares having face value of ₹10 each. Therefore, the Authorised capital is Rs. 10,00,000 (1,00,000 equity shares @ ₹ 10 per share)
2. In the above case, the public has subscribed for 30,000 equity shares. Therefore, the subscribed capital is Rs 3,00,000 (30,000 equity shares @ ₹ 10 per share)
3. In the above case, the company has offered to the public 40,000 equity shares. Therefore, the issued capital is ₹ 4,00,000 (40000 equity shares @ 10 per share)