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Which one of the following items is not a part of subscribed capital?
Equity Shares
Preference Shares
Forfeited Shares
Bonus Shares
- Subscribed capital represents the portion of issued capital that investors have agreed to buy.
- Option 1: Equity Shares
- These are part of subscribed capital.
- Option 2: Preference Shares
- Also a component of subscribed capital as they represent shares subscribed by investors.
- Option 3: Forfeited Shares
- Shares that were subscribed but later forfeited due to non-payment. They are no longer part of subscribed capital.
- Option 4: Bonus Shares
- Issued to existing shareholders and form a part of subscribed capital as they increase the share capital without new funds.
Correct Answer: Option 3: Forfeited Shares
By: Abhipedia ProfileResourcesReport error
SAMEER KUMAR
In balance sheet, under the head "Share capital" ,there are - Authorised capital, Issued capital, capital & Called up capital are shown. Here share forfeited A/C is ot shown,is it? Then how in the explanation it is written that share forfeited A/C is shown in Balance sheet under the head "share capital"
after called up there is a paid up capital , the share forfeiture account is added to paid up capital
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