English

Give One Word / Term / Phrase for the Following Statement : - Book Keeping and Accountancy

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Question

Give one word / Term / phrase for  the following statement :
Capital stated in the capital clause of Memorandum of Association.

One Word/Term Answer
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Solution

Authorised Capital

Explanation: The capital stated in the capital clause of the Memorandum of Association is regarded as authorised capital. It is the maximum amount of capital that a company can issue to its shareholders. It is also known as the registered capital or the nominal capital of a company.

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Chapter 10: Company Accounts Part - 1 (Accounting for Shares) - Exercise 2 [Page 350]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 10 Company Accounts Part - 1 (Accounting for Shares)
Exercise 2 | Q 1 | Page 350
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