Question:
The Issued capital of Diwan Ltd. is :
The Issued capital of Diwan Ltd. is :
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Issued Capital = Number of shares issued × Face value per share.
It is always less than or equal to Authorised Capital. In this case, the company issued 50,000 shares out of the authorised 1,00,000 shares.
It is always less than or equal to Authorised Capital. In this case, the company issued 50,000 shares out of the authorised 1,00,000 shares.
Updated On: Mar 9, 2026
- ₹ 1,00,00,000
- ₹ 1,00,000
- ₹ 50,00,000
- ₹ 50,000
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The Correct Option is C
Solution and Explanation
We need to find the Issued Capital of Diwan Ltd. from the given information.
Step 1: Understand the term "Issued Capital".
Issued Capital is that part of the Authorised Capital which is offered by the company to the public for subscription. It is the nominal value of shares issued by the company.
Step 2: Identify the issued capital from the given information.
The question states:
"The company invited applications for issuing 50,000 shares."
Face value per share = ₹ 100 Therefore, Issued Capital = Number of shares issued × Face value per share \[ \text{Issued Capital} = 50,000 \times 100 = ₹ 50,00,000 \] Step 3: Analyze each option.
Step 1: Understand the term "Issued Capital".
Issued Capital is that part of the Authorised Capital which is offered by the company to the public for subscription. It is the nominal value of shares issued by the company.
Step 2: Identify the issued capital from the given information.
The question states:
"The company invited applications for issuing 50,000 shares."
Face value per share = ₹ 100 Therefore, Issued Capital = Number of shares issued × Face value per share \[ \text{Issued Capital} = 50,000 \times 100 = ₹ 50,00,000 \] Step 3: Analyze each option.
- (A) ₹ 1,00,00,000: Incorrect. This is the Authorised/Registered Capital.
- (B) ₹ 1,00,000: Incorrect. This is the number of authorised shares, not the issued capital amount.
- (C) ₹ 50,00,000: ✓ Correct. This matches the issued capital calculated.
- (D) ₹ 50,000: Incorrect. This is the number of issued shares, not the capital amount.
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