distinguish between authorised capital and issued capital
Answers
Answer:
Issued capital is issued by the company from time to time . The issued has to be within the authorised capital as started in memorandum . The issued share capital is either equal to or less tha the authorised capital . It can never be more than the authorised capital of the company
Authorized capital: The amount of capital with which a company is registered with the registrar of companies (body responsible for registration of companies). It is the maximum amount of capital which a company can raise through shares i.e. shared capital can be maximum up to the authorized capital and not beyond. Due to this reason companies are registered with such authorized capital which is well above their current needs of financing so that if more is needed in future then it is easily possible. Authorized capital is also called Registered capital or Nominal capital.
Issued capital: The amount of capital (out of subscribed capital) which has been issued by the company to the subscribers and thus are now shareholders.