Q.Explain the classification of share capital.

The share capital of a company is classified into Authorised, Issued, Subscribed, Called-up and Paid-up capital, with Uncalled and Reserve capital as further parts. Each represents a different stage between the maximum capital a company may raise and the amount actually received.

Share capital means the capital raised by a company through the issue of shares. It is the most important source of a company's owned funds. For legal and accounting purposes it is divided into the following categories, which flow logically from one to the next.

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