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Question
Subscribed capital is ______.
Options
That part of authorised capital which is issued to the public for subscription.
That part of issued capital which has been actually subscribed by the public.
That part of subscribed capital which has been called up on the shares.
That part of subscribed capital which has not yet been called up on the shares.
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Solution
Subscribed capital is that part of issued capital which has been actually subscribed by the public.
Explanation:
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Authorised/Nominal Capital: Maximum capital a company can issue (mentioned in Memorandum of Association).
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Issued Capital: Portion of authorised capital actually offered to the public.
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Subscribed Capital: Portion of issued capital that the public has actually applied for and taken up.
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Called-up Capital: Portion of subscribed capital that the company has demanded from shareholders.
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Paid-up Capital: Portion of called-up capital that shareholders have actually paid.
