Question

Match List - I with List - II

List - I	List - II
(A) Authorised Capital	(II) Maximum amount of share capital a company could raise during its lifetime
(B) Reserve Capital	(I) A portion of uncalled share capital will be called at the time of winding up
(C) Issued Capital	(III) Capital issued to public for subscription
(D) Subscribed but not fully paid capital	(IV) Amount called up and received but not fully paid

Choose the correct answer from the options given above:

• A. (A)-(II), (B)-(I), (C)-(III), (D)-(IV)
• B. (A)-(II), (B)-(III), (C)-(IV), (D)-(I)
• C. (A)-(I), (B)-(IV), (C)-(I), (D)-(II)
• D. (A)-(II), (B)-(I), (C)-(IV), (D)-(III)

Hint:

"Understand the process and chronology behind various activities so you never make errors related to capital."

Answer 1

The Correct Option is A

Understanding Share Capital Terminology:
\begin{itemize} \item
Authorised Capital (A): Maximum amount of share capital a company could raise during its lifetime. \item
Reserve Capital (B): A portion of uncalled share capital that will be called at the time of winding up. \item
Issued Capital (C): Capital issued to the public for subscription. \item
Subscribed but not Fully Paid Capital (D): Amount called up and received but not fully paid. \end{itemize} Thus, the correct matching is (A)-(II), (B)-(I), (C)-(III), (D)-(IV).