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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 - Secretarial Practice

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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
Short Note

Solution

  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)
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Methods of Issue of Shares
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Chapter 3: Issue of Shares - EXERCISE [Page 66]

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