Paid up capital will be kept in debit side in accounting statement
capital
Authorized capital is the maximum amount company can raise so paid up capital cannot be more than authorized capital
The paid up capital = Number of authorised shares x nominal value per share
Retained earning only increased due to prior year operating profits and that's why it has no effect of any kind of additional capital introduced which directly increase the subscribed or paid up capital and not retained earnings.
debit cashcredit share capital
debit cash /bankcredit capital account
no.
Paid-up capital means the total amount which is actually paid to the company.
The actual term is 'paid in' capital It is the capital paid in by shareholders to the co above and beyond shared capital.
The actual term is 'paid in' capital It is the capital paid in by shareholders to the co above and beyond shared capital.
Paid up capital stock is that share capital for which investors or shareholders has made full payment to acquire them.
Paid up capital will be kept in debit side in accounting statement
The Authorised Capital is the amount of capital which a limited company COULD issue.(10,000 shares of £1 each) Paid up capital is the amount actually issued.(2842 shares of £1 each fully paid)
capital
Authorized capital is the maximum amount company can raise so paid up capital cannot be more than authorized capital
The paid up capital = Number of authorised shares x nominal value per share