Meaning:
The Joint Stock Company is a major type of business association. The sum expected by the organization for its business exercises is raised by the issue of offers. The sum so raised is called 'share Capital' (or capital) of the organization. It very well might be noticed that an organization restricted by offers will have share capital. An organization restricted by ensure or a limitless organization might not have any share capital. The people who purchase the portions of organization are called 'Investors'.
Kinds of Share Capital: (I) Authorized, enrolled or ostensible capital (ii) Issued capital (iii) Subscribed capital (iv) Called up capital (v) Paid up capital
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(I) Authorized, enrolled or ostensible capital: This is how much capital with which the organization plans to get itself enlisted. This is how much offer capital which an organization is approved to issue. Ostensible capital is isolated into portions of a decent sum. It should be set out in the reminder of affiliation. It tends to be expanded or diminished by following the endorsed method.
(ii) Issued capital: It is that piece of the ostensible capital which is really given by the organization for public membership. An organization need not issue the whole approved capital on the double. It continues raising the capital as and when the requirement for extra assets is felt. The contrast between the ostensible and the gave capital is known as 'unissued capital', which can be given to people in general sometime in the not too distant future. Where the entire of approved capital is proposed to people in general, the approved and gave capital will be something very similar. Given Capital can't be more than the approved capital. Given capital incorporates the offers allocated to public, merchants, signatories to update of affiliation and so on
(iii) Subscribed capital: It is that measure of the ostensible worth of offers which have really been taken up by general society. It is that piece of the ostensible capital which has really been taken up by investors who have consented to give thought in kind or in real money for shares gave to them. Where offers gave for membership are completely bought in for, gave capital would mean exactly the same thing as 'bought in capital'. That piece of given capital which isn't bought in by general society is called 'Withdrawn Capital'. Bought in capital can't be more than gave capital.
(iv) Called up capital: The sum due on the offers bought in might be gathered from the investors in portions at various stretches. Called up capital is that measure of the ostensible worth of offers bought in for which the organization has requested that its investors pay through calls or in any case. On the off chance that 10,000 portions of Rs 100 each have been bought in by general society, and the organization has requested that the investors pay Rs 10 on application, Rs. 20 on allocation and Rs 30 on first call, then, at that point, the called up capital of the organization would be Rs. 6, 00,000 (for example 10,000 x 60). The excess sum for example Rs. 40 for every offer on 10,000 offers (for example Rs 4, 00,000) would be the uncalled capital of the organization.
(v) Paid up capital: That piece of the called up capital which is really settled up by the individuals is known as the settled up capital. All in all, settled up capital addresses the all out installments made by the investors to the organization in light of the calls made by the organization. Settled up capital of the organization is determined by deducting the brings financially past due from the called up capital. Settled up capital = Called up capital Less Calls-falling behind financially: For instance, out of 10,000 portions of Rs 100 each, on which Rs 60 has been called by the organization from the investors, one investor, holding 100 offers, neglects to pay the principal call of Rs 30 for every offer on his portions, the settled up capital of the organization would be Rs 6, 00,000-Rs 3,000 for example Rs 5, 97,000.
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