Difference between Authorised capital and Issued Capital class 12
looking for the difference between authorised capital and issued capital as per the syllabus of class 12 CBSE, ISC, and state Board.
I have explained this topic in detail.
Distinction between Authorised capital and Issued capital (Class 12)
Authorised capital vs Issued capital
| Basis of Distinction | Authorized/Nominal/Registered capital | Issued Capital |
| Meaning | It is the maximum amount for which a company is authorised to issue shares | It is that part of the authorised capital which is offered to the public for subscription. |
| Disclosure | It is stated in the Memorandum of Association of the company | It is stated in the Articles of Association of the Company. |
| Limit | It is equal to or more than the issued capital | It is equal to or less than the authorised capital. |
