The issued capital of the company is :
The issued capital of the company is :
Options
Official answer
Correct option: (C) Rs. 9,00,000.
- Issued capital is the portion of authorised capital actually offered by the company to the public (or others) for subscription.
- Dharma Ltd. offered 90,000 equity shares of Rs. 10 each for public subscription = 90,000 × Rs. 10 = Rs. 9,00,000.
Marking scheme
- 1.1 mark for selecting (C) Rs. 9,00,000.
Hint
Issued capital = number of shares actually offered to the public × face value, not the authorised limit.
Quick oral answer
Issued capital is the capital actually offered to the public — Dharma Ltd. offered 90,000 shares of Rs. 10 each, i.e. Rs. 9,00,000.
Common mistakes
- 1.Confusing issued capital with authorised capital and answering Rs. 30,00,000.
- 2.Forgetting that issued capital is based on shares 'offered', not on shares later forfeited or fully paid.
Analysis and explanation
This continues the case's test of the capital hierarchy.
Why (C) is correct
- Only 90,000 out of the authorised 3,00,000 shares were offered to the public, so issued capital = 90,000 × Rs. 10 = Rs. 9,00,000 — regardless of the fact that all 90,000 shares were fully subscribed.
Why the distractors are wrong
- (A) Rs. 3,00,000 is not derived from any figure in the case.
- (B) Rs. 30,00,000 is the Nominal/Authorised capital (Q26), not the issued capital.
- (D) Rs. 33,00,000 has no basis in the case facts.
Interesting facts
A company need never issue its entire authorised capital at once — issued capital can be raised in tranches over several years as the business needs more funds.
Under Schedule III, issued capital must be shown in the Notes to Accounts even though the Balance Sheet total only reflects subscribed capital.
Question details
Q27 of 39 questions
- Board
- CBSE
- Class
- Class 12
- Subject
- Accountancy
- Year
- 2026
- Section
- Section A
- Marks
- 1
- Type
- MCQ
- Chapter
- Accounting for Share Capital
- Topic
- Issued Share Capital
- Bloom's level
- remember
- Syllabus topic
- Unit 1: Accounting for Companies — Accounting for Share Capital: Categories of Share Capital (Issued Capital)
- Author
- CBSE
- Reviewed by
- Padhantu Academic Team
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Frequently asked questions
Why isn't issued capital equal to the authorised capital?
A company can choose to offer only part of its authorised capital to the public at any given time; here Dharma Ltd. offered only 90,000 of its 3,00,000 authorised shares, keeping the remaining 2,10,000 shares unissued for future use.