Share Capital - Subscribed, Paid up and Uncalled Capital | Class XII Accounts

2015-07-10 62

Subscribe to the Channel and stay updated with the latest Educational Videos.

The time has gone where you need to spend money on tuition. Learn here on the best Educational channel for CBSE and ICSE boards.

This Video explains the meaning of Subscribed capital in the context of a company.

Share capital which has been Subscribed by the Public is known as subscribed capital. So lets say a company, offered to issue 10,000 shares of Rs. 20 each, on which Rs. 10 per share was to be paid at the time of application. The Public applied for 8,000 share on which they paid Rs. 10 per share. In this case,

Subscribed capital is the amount of capital for which the Public has applied, i.e 8000 shares
Paid up capital would be the value of money paid by the shareholders who subscribed, i.e 8000 X 10 = 80,000
Uncalled capital would be the value of money, which the company has not called for, or asked from shareholders who subscribed, i.e 8000 X 10 = 80,000

Free Traffic Exchange