Tuesday 7 July 2015

Difference between Issued and paid up Capital

Difference between Issued and paid up Capital

Issued & paid up capital are two different things. The difference is being explained below

1.    Issued Capital

Issue capital is the amount of capital issued to public for subscription. It is not necessary that public will subscribed all the capital.

2.    Paid up Capital

The amount of capital subscribed by the public is known as paid up capital. it is important to mention that paid up capital may be lower than issued capital. In practice issued and paid capital are same, because broker takes the responsibility for full subscription against some fees. It means broker takes the remaining capital portion, if any.