CUET CUET Accountancy 2024 - Arrange the following in the correct order: | PYQs + Solutions

CUET Accountancy 2024

Accountancy

Accounting for Share Capital

Easy

Arrange the following in the correct order:

(C), (B), (A), (D), (E)

(B), (C), (A), (D), (E)

(C), (B), (A), (E), (D)

(B), (C), (A), (E), (D)

Correct Option: 3

To understand the terms related to capital in a company, let's define each one briefly:

Authorised Capital (C): The maximum amount of share capital a company can issue.

Issued Capital (B): The portion of authorised capital that has actually been issued to shareholders.

Subscribed Capital (A): The part of issued capital that investors have agreed to buy.

Called-up Capital (E): The amount of subscribed capital that the company has requested payment for.

Paid-up Capital (D): The amount that shareholders have actually paid for the called-up capital.

Now, arranging these in the correct order based on the flow from maximum potential to actual funds received:

C → B → A → E → D

So, the correct answer is option 3: (C), (B), (A), (E), (D).