The amount of share capital which a company is authorised to issue by its Memorandum of Association is known as ........
Show Hint
- Nominal capital
- Issued capital
- Reserve capital
- Subscribed capital
The Correct Option is A
Solution and Explanation
To solve the problem, we need to identify the term for the amount of share capital a company is authorised to issue as per its Memorandum of Association.
1. Understanding the Memorandum of Association:
The Memorandum of Association is a legal document that outlines the fundamental details of a company, including its objectives, powers, and scope. One of its key components is the capital clause, which specifies the maximum amount of share capital the company is authorised to issue.
2. Identifying the Term:
The amount of share capital that a company is authorised to issue, as stated in the Memorandum of Association, is known as 'Authorised Capital' (also called Nominal Capital or Registered Capital). This is the maximum limit of share capital that the company can issue without amending its Memorandum.
Final Answer:
The amount of share capital which a company is authorised to issue by its Memorandum of Association is known as Nominal Capital.
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- Read the passage given below and answer the questions: Q5 to Q9.
Ram Motors Ltd. invited applications on 3,000 Equity Shares of ₹100 each at a premium of ₹20. For application ₹50 (including premium), on allotment ₹50, and on final call ₹20. Total applications received were 4,000 and allotted on pro-rata basis. Excess application money adjusted towards allotment. - 600 shares of ₹10 each were issued at 20% premium. Final call of ₹3 not received on 100 shares. What is the forfeiture amount?
According to Securities and Exchange Board of India (SEBI), guidelines, minimum subscription of capital cannot be less than 90% of .......
Alexia Limited invited applications for issuing 1,00,000 equity shares of ₹ 10 each at premium of ₹ 10 per share.
The amount was payable as follows:- On application ₹ 9 per share (Including premium ₹ 6 per share)
- On allotment ₹ 8 per share (Including premium ₹ 4 per share)
- On first and final call ₹ 3 per share.
Applications were received for 1,50,000 equity shares and allotment was made to the applicants as follows:
Category A: Applicants for 90,000 shares were allotted 70,000 shares.
Category B: Applicants for 60,000 shares were allotted 30,000 shares.
Excess money received on application was adjusted towards allotment and first and final call.
Shekhar, who had applied for 1200 shares failed to pay the first and final call. Shekhar belonged to category B.
Pass necessary journal entries for the above transactions in the books of Alexia Limited. Open calls in arrears and calls in advance account, wherever necessary.- Suhas and Vilas were partners in a firm with capitals of Rs 4,00,000 and Rs 3,00,000 respectively. They admitted Prabhas as a new partner for a \( \frac{1}{5} \) share in future profits. Prabhas brought Rs 2,00,000 as his capital. Prabhas' share of goodwill will be:
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