Advertisements
Advertisements
Question
Write a short note on Authorized capital.
Solution
According to Sec 2(8) of the Companies Act, “It means such capital as is authorized by the memorandum of a company to be the maximum amount of share capital of the company”.
APPEARS IN
RELATED QUESTIONS
That part of share capital which can be called up only on the winding up of a company is called:
When shares are issued for purchase of assets, the amount should be credited to
If a share ₹ 10 on the which ₹ 8 has been paid up is forfeited. Minimum reissue price is
Supreme Ltd. forfeited 100 shares of ₹ 10 each for non-payment of final call of ₹ 2 per share. All these shares were re-issued at ₹ 9 per share. What amount will be transferred to capital reserve account?
Progress Ltd. issued 50,000 ordinary shares of ₹ 10 each, payable ₹ 2 on the application, ₹ 4 on allotment ₹ 2 on first call and ₹ 2 on final call. All the shares are subscribed and the amount was duly received. Pass journal entries.
Write a short note on Reserve capital.
