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Authorized capital is the maximum amount a company is allowed to collect from public by issuing shares. Paid up capital is the amount of capital which a company has currently issued to the public in the form of shares or the public has provided the money to a company for working.

For example:

Authorized capital $1000

Paid Up capital $100

Now a company can issue shares of $900 to the public offering and not more than that.

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Can paid up capital greater than a companies authorised capital?

Authorized capital is the maximum amount company can raise so paid up capital cannot be more than authorized capital


What is the different kind of capital in accounting?

1 - Authorized capital 2 - Subscribed capital 3 - Paid up capital


What is post issue paid up capital?

The amount of a company's capital that has been funded by shareholders. Paid-up capital can be less than a company's total capital because a company may not issue all of the shares that it has been authorized to sell. Paid-up capital can also reflect how a company depends on equity financing.


is the total amount of issued share capital for which the shareholders are required to pay is the authorized share capital or issued share capital or call up share capital or paid up share?

The total amount of issued share capital for which shareholders are required to pay is referred to as "issued share capital." This represents the portion of the authorized share capital that has been allocated to shareholders and is under their obligation to pay. In contrast, "paid-up share capital" refers to the amount that shareholders have actually paid, while "call-up share capital" pertains to amounts that may be called for payment in the future.


What is the paid up capital for shares in companies?

Paid-up capital refers to the amount of money a company has received from shareholders in exchange for shares of stock that have been issued. It represents the total value of shares that shareholders have fully paid for, as opposed to authorized or issued shares that may not yet have been paid for. This capital is essential for a company as it provides funding for operations and growth, reflecting the financial commitment of its shareholders.

Related Questions

Can paid up capital greater than a companies authorised capital?

Authorized capital is the maximum amount company can raise so paid up capital cannot be more than authorized capital


What is the difference between shares capital and stated capital?

Authorized Capital is like the ceiling of the organization , or the extend to which an organization can issue its shares. Stated Capital Is the issued capital of the organization Dalia M. Rezk


What is the difference between paid-in capital and additional paid-in capital in a company's financial statements?

Paid-in capital represents the total amount of capital contributed by shareholders for purchasing stock, while additional paid-in capital specifically refers to the amount paid above the stock's par value.


What is the different kind of capital in accounting?

1 - Authorized capital 2 - Subscribed capital 3 - Paid up capital


What is the difference between paid-in capital and paid-up capital?

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)


Difference between retained earnings and paid in capital?

Paid in capital is that amount which investor invest in company while retained earning is that portion of profit which is not distributed to shareholders of company.


What is authorized capital and how different is that from paid up capital?

Authorized capital is the maximum amount from which company registered to be work with and written in its memorandum and articles unless it changes it and again register it with authorities the maximum capital cannot exceed with this amount. Paid up capital is the subscribed capital for which share holders have purchased shares of company for any specific period of time.


What is paid capital?

The amount of a company's capital that has been funded by shareholders. Paid-up capital can be less than a company's total capital because a company may not issue all of the shares that it has been authorized to sell. Paid-up capital can also reflect how a company depends on equity financing.


Paid-Up Capital and issued capital?

The amount of a company's capital that has been funded by shareholders. Paid-up capital can be less than a company's total capital because a company may not issue all of the shares that it has been authorized to sell. Paid-up capital can also reflect how a company depends on equity financing.


What is post issue paid up capital?

The amount of a company's capital that has been funded by shareholders. Paid-up capital can be less than a company's total capital because a company may not issue all of the shares that it has been authorized to sell. Paid-up capital can also reflect how a company depends on equity financing.


is the total amount of issued share capital for which the shareholders are required to pay is the authorized share capital or issued share capital or call up share capital or paid up share?

The total amount of issued share capital for which shareholders are required to pay is referred to as "issued share capital." This represents the portion of the authorized share capital that has been allocated to shareholders and is under their obligation to pay. In contrast, "paid-up share capital" refers to the amount that shareholders have actually paid, while "call-up share capital" pertains to amounts that may be called for payment in the future.


What is paidup capital?

The amount of a company's capital that has been funded by shareholders. Paid-up capital can be less than a company's total capital because a company may not issue all of the shares that it has been authorized to sell. Paid-up capital can also reflect how a company depends on equity financing.