The below-mentioned article provides the full explanation about Types of Share Capital…
Types of Share Capital:-
Share capital means the capital raised by a company by the issue of shares. A company, being an artificial person, cannot generate its own capital which has necessarily to be collected from several persons. These persons are called as shareholders and the amount contributed by them is called share capital.
It is also known as ownership capital of a company because share capital cannot be returned during the lifetime of the company.
The share capital of the company can be divided into various types:-
Types of Share Capital-
1. Authorized or Nominal or Registered Capital-
In case of a company limited by shares or a company limited by guarantee and having a Share Capital, the amount of the capital with which the company is registered is called the authorized or nominal capital and it is always stated in the memorandum of association of the company.
2. Issued Capital-
That portion of the Authorised Capital which is issued for a subscription to the public is called Issued Capital. It sets the limit of the capital available for subscription.
The prescribed form of the Balance Sheet requires the under the head ‘Issued Capital‘, should be s...
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