Issued Capital refers to _______________.

Paid up value of all shares allotted.

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Called up value of all shares allotted.

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Nominal value of all shares allotted.

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Nominal value of all shares offered to public

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Solution

The correct option is C Nominal value of all shares allotted.
The issue capital refers to the nominal, or face, value of the shares rather than their actual value.The directors of a company can increase its issued capital by issuing more shares within the powers specified in the company's articles of association.

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Similar questions

Q. Select the most appropriate answer from the alternatives given below and rewrite the sentence :

Paid up, value of all shares allotted is called ______________ capital.
a) uncalled
b) issued
c) subscribed
d) nominal

PRACTICAL PROBLEMS

(Calculation of different types of Capital):

From the following details calculate authorised capital, issued, subscribed, called up and paid up share Capital and also calls in arrear and uncalled capital:

Pankaj Ltd. was formed with a capital of Rs 5,00,000 divided in to 5,000 shares of Rs 100 each. Of these 1,000 shares were issued to the vendor as fully paid in payment of purchase of machinery. 3,000 shares were offered to the public and of these 2,500 shares were applied and allotted. Rs 10 was payable on application and Rs 25 on allotment. The balance was yet to be called. All the money called up was duly received with the exception of allotment money on 300 shares.

A company offered 1,00,000 shares of Rs 10 each payable as Rs 3 on application, Rs 2.50 on allotment, Rs 2.50 on 1st call and Rs 2 on the final call.

The public applied for 1,52,000 shares. The shares were allotted on a pro-rata basis to the applicants of 1,50,000 shares. All shareholders paid the allotment money excepting one shareholder who was allotted 200 shares. These shares were forfeited. The first call was made thereafter. The forfeited shares were re-issued @ Rs 9 per share Rs 8 paid up. The final call was not yet made.

You are required to pass journal entries.

Q. A company issued 10,000 Equity Shares of ₹ 10 each at a premium of ₹ 3 per share payable ₹ 5 on application, ₹ 5 (including premium) on allotment and the balance on first call . All the shares offered were applied for and allotted. All the money due on allotment was received except on 200 shares. Call was made. All the amount due thereon was received except on 300 shares. Directors forfeited 200 shares on which both allotment and call money were not received.
Pass necessary journal entries to record the above.

X Ltd. is registered with an authorised capital of Rs 20,00,000 divided into share of Rs 10 each. It has issued 80 $%$ of its nominal capital to general public for subscription. The issued was oversubscribed to the extent of 30,000 shares. The amount payable was as follows : Rs 2 on Application, Rs 3 on Allotment and balance in equal instalment on two calls. The shares were allotted to the public on a pro-rata basis to all the applicants. A shareholder holding 4,000 shares failed to pay both call money and his shares were forfeited. All the forfeited shares were re-issued to Mr. Mohan for Rs 8 per share. Pass necessary Journal entries.

Record the forfeiture and re-issue entries in each of the following cases:

(i) A Ltd. forfeited 1,000 shares of Rs 10 each, for non-payment of rs 2 per share. These shares were re-issued at Rs 9 per share as fully paid up.

(ii) D Ltd. issued share of Rs 20 each. All the shareholders have paid the full money except one shareholder holding 500 shares who failed to pay the final call money of Rs 2 per share. His shares were forfeited and 60 $%$ of its shares were re-issued at Rs 18 per share.

(iii) Akki enterprises forfeited 400 shares for non-payment of Rs 3 per share (Rs 20 face value). All the forfeited shares were re-issued at Rs 22 per share.

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