Question
Explain Concepts: Issued Share Capital

Answer

The company can issue share and collect share capital as and when it requires money, so the amount collected by issuing shares is termed as the Issued Capital. For eg. CoMpany ‘A’ whose authorised share capital is 20 crores which are divided into 20 lakh shares of 100 each. Out of its authorised capital issues 1 lakh shares only for subscription. So, the issued capital of the company is considered as one crore (1,00,000 shares x 100 ).

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