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Question :

On 1st April, 2012, Vishwas Ltd. was formed with an authorised capital of  Rs. 10,00,000 divided into 1,00,000 equity shares of  Rs. 10 each. The company issued prospectus inviting applications for 90,000 equity shares. The company received applications for 85,000 equity shares. During the first year,  Rs. 8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did not pay the first call of  Rs. 2 per share. Shyam's shares were forfeited after the first call and later on 1,500 of the forfeited shares were reissued at  Rs. 6 per share,  Rs. 8 called-up.

Question:- Authorized capital of the company is ________.

Option 1: Rs. 10,00,000

Option 2: Rs. 9,00,000

Option 3: Rs. 8,45,000

Option 4: None of these


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Rs. 10,00,000


Solution : Answer = Rs. 10,00,000

According to Section 2(8) of the Companies Act, 2013:

"Authorised capital" or "nominal capital" means such capital as is authorised by the memorandum of a company to be the maximum amount of share capital of the company.

The authorised capital is given in the question = Rs.10,00,000.

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