Difference between Authorised and Issued Capital Class 12

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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.

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Authorised Capital Vs Issued Capital

BasisAuthorised (Nominal) CapitalIssued Capital
MeaningIt is the amount stated in the memorandum of Association which a company can issue as share capital of the companyIt is the nominal value of that part of Authorised Share Capital that is issued for a subscription.
Disclosure in Memorandum of AssociationThe amount is stated in the Memorandum of AssociationIt is not stated in the Memorandum of Association.
Whether one can exceed the otherIt is equal to or more than the issued share capitalIt is equal to or less than the Authorised Share Capital
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Anurag Pathak
Anurag Pathak

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