Question

Total number of shares into which the authorised share capital of the company is divided is:

• A. 10,00,000
• B. 5,00,000
• C. 1,00,000
• D. 11,50,000

Hint:

To calculate the total number of shares from authorised capital, divide the total authorised capital amount by the face value per share.

Answer 1

The Correct Option is A

Step 1: From the question, the authorised capital is given as: \[ 1,00,00,000 \] Step 2: Each equity share has a face value of 10. So, the total number of authorised shares is: \[ \frac{1,00,00,000}{10} = 10,00,000 \text{ shares} \] \(\Rightarrow\) The authorised capital is divided into 10,00,000 equity shares of 10 each.