Share Capital can be of different types and each type is discussed below :
Authorised Capital
This is also known as nominal capital or registered capital
This is the maximum amount of capital which the company can raise and for which the company has received approval from government (ROC). It is stated in the memorandum of association at the times of registering the company and so it is called registered capital.
It is separately stated in memorandum of association for each class of shares i.e. equity and preference shares.
The issued capital can be equal to less than the autorized capital but can never be higher then the authorised capital.
We have to understand that this is just an approved capital and no actual transaction has happened for authorized capital. No journal entry is passed for it in the books of account as no financial transaction has happened.
Issued Capital
It is that part of authorized capital which is actually issued for subscription. It includes shares issued for cash and also shares allotted for consideration other than cash.
It is to be noted that no journal entry is passed for issued capital in the books of accounts as no financial transaction has yet taken place. People may or may not subscribe to the shares issued by the company.
The issued capital can never exceed the authorized capital but it will always is higher or equal to the subscribed capital as discussed below.
Subscribed Capital
This is that part of issued capital which the public has actually subscribed. The public subscribe to the share capital of the company by making an application and paying the money payable at the time of application. This is the stage where the company actually starts making entries in the books of accounts. This is because the financial transaction has taken place and the company has received the application money.
Subscribed capital includes both shares issued for cash and shares issued for consideration other than cash.
The subscribed capital can further be classified into two types : a) Subscribed and fully paid up and b) Subscribed and not fully paid up.
Subscribed and Fully Paid Up
These are shares on which entire amount of (face value + premium (if any)) on each share is called up by the company and also fully paid by the shareholder.
Suppose a company has issued 100 shares of Rs 10 each. If the company has called up entire amount and also received entire amount of Rs 10 then such shares will be called Subscribed and fully paid up.
It is to be noted that once entire amount has been paid by the shareholder they do not have any further liability to pay anything to the company if the company is a limited liability company.
Subscribed and Not Fully Paid Up
The shares can be subscribed and not fully paid up, either due to one of the following two reasons.
a) The company has not yet called up entire face value of the share. Suppose a company has 100 shares of Rs 10 each. It has till now called up only Rs 7 per share.
b) The company has called up the entire face value of the share but has not yet received it fully. Suppose a company has 100 shares of Rs 10 each and company has called up the entire amount but one shareholder holding 20 shares has till now paid only Rs 8 per share. In such a case 20 shares will be called Subscribed and not fully paid up.
Called up Capital
It is that part of the capital which has been called up by the company for payment.
Paid Up Share Capital
It is that part of the capital which has been actually paid by the shareholder to the company. Any amount which is called up by the company, but is not yet paid, is known as "Calls in Arrears".
Reserve Capital
This is in no way related to the above kinds of capital and is totally a different thing. But considering the similarity in names it has been discussed here to avoid confusion.
Reserve capital is that part of the subscribed capital of a company which by a special resolution, Company resolves not to call except in the event of winding up. Suppose a company has 1000 shares of Rs 10 each. Out of Rs 10 per share , Company Reserves Rs 3 per share to be called only in case of winding up then this Rs 3 per share totaling Rs 3000 will be known as reserve capital