Difference between Authorised and Issued Capital Class 12
Looking for What is the difference between authorised (Nomial) capital and issued capital in Accountancy class 12 CBSE, ISC and other state Board.
See, this topic is concerned with the Accounting for share capital chapter of Accountancy class 12.
Authorised Capital Vs Issued Capital
| Basis | Authorised (Nominal) Capital | Issued Capital |
| Meaning | It is the amount stated in the memorandum of Association which a company can issue as share capital of the company | It is the nominal value of that part of Authorised Share Capital that is issued for a subscription. |
| Disclosure in Memorandum of Association | The amount is stated in the Memorandum of Association | It is not stated in the Memorandum of Association. |
| Whether one can exceed the other | It is equal to or more than the issued share capital | It is equal to or less than the Authorised Share Capital |
