Capital Account

01

PYQ 2025

medium

accountancy ID: cbse-cla

The amount of share capital which a company is authorised to issue by its Memorandum of Association is known as ___.

1

Nominal capital

2

Issued capital

3

Reserve capital

4

Subscribed capital

02

PYQ 2025

medium

accountancy ID: cbse-cla

Kajal and Laura were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted Maddy for share in future profits. Maddy brought ₹ 8,00,000 as his capital and ₹ 4,00,000 as his share of premium for goodwill. Kajal, Laura and Maddy decided to share profits in future in the ratio of 2 : 1 : 1. After all adjustments in respect of goodwill, revaluation of assets and liabilities etc. Kajal’s capital was ₹ 15,00,000 and Laura’s capital was ₹ 8,00,000. It was agreed that partners’ capitals should be in proportion to their new profit sharing ratio. The cash brought in to adjust the capital was made by bringing in or withdrawing the necessary cash as the case may be. The cash brought in by Kajal was:

1

₹100000

2

₹800000

3

₹1600000

4

₹1200000

03

PYQ 2025

medium

accountancy ID: cbse-cla

According to Securities and Exchange Board of India (SEBI) guidelines, minimum subscription of capital cannot be less than 90 of:

1

Authorised capital

2

Issued capital

3

Reserve capital

4

Subscribed capital

Correct Option: (2)

According to the Securities and Exchange Board of India (SEBI) guidelines, the minimum subscription requirement refers to the minimum percentage of the issued capital that must be subscribed by the public in an initial public offering or rights issue. This minimum percentage is set at 90%. If the company fails to receive applications for at least 90% of the issued capital, the issue is considered a failure, and the company must refund the money received from applicants. Capital Type Description Authorised Capital The maximum capital a company is authorized to issue by its constitutional documents. Issued Capital The portion of the authorised capital that is offered to investors for subscription. Reserve Capital The part of the uncalled capital of a company's shares which can be called only in the event of the company's winding up. Subscribed Capital The portion of the issued capital subscribed by the public. The correct answer is that the minimum subscription of capital cannot be less than 90% of the Issued capital .

Capital Type	Description
Authorised Capital	The maximum capital a company is authorized to issue by its constitutional documents.
Issued Capital	The portion of the authorised capital that is offered to investors for subscription.
Reserve Capital	The part of the uncalled capital of a company's shares which can be called only in the event of the company's winding up.
Subscribed Capital	The portion of the issued capital subscribed by the public.

04

PYQ 2025

medium

accountancy ID: cbse-cla

Kajal and Laura were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted Maddy for share in future profits. Maddy brought ₹ 8,00,000 as his capital and ₹ 4,00,000 as his share of premium for goodwill. Kajal, Laura and Maddy decided to share profits in future in the ratio of 2 : 1 : 1. After all adjustments in respect of goodwill, revaluation of assets and liabilities etc. Kajal’s capital was ₹ 15,00,000 and Laura’s capital was ₹ 8,00,000. It was agreed that partners’ capitals should be in proportion to their new profit sharing ratio. The cash brought in to adjust the capital was made by bringing in or withdrawing the necessary cash as the case may be. The cash brought in by Kajal was:

Chapter Questions
4 MCQs