SHARE CAPITAL

Prepared by:
Nor Faiezah Binti Muhamad Ali
INTRODUCTION: HOW STOCK
IS WORKS
CONT...
INTRODUCTION
UNDERSTANDING THE TERMS
OF:
Authorized capital

Issued capital Unissued capital

Called-up capital Un-called capital

Paid-up capital Unpaid capital

i. You are required to watch the video link below in order to understand the terms above
clearly.
ii. The video to be watch was until the first 7.06 minutes.
❖ https://www.youtube.com/watch?v=O4ajUPoOi-Y
UNDERSTAND THE TYPES OF
SHARES
LET’S DO EXERCISE
▪ Indah Berhad was formed with an authorized capital consisting of 2,000,000 Ordinary shares of
RM1 each and 500,000 7% Preference Share of RM2 each.
▪ During the year, the company issued 500,000 Ordinary Shares to the public at par value, which only
RM0.25 has been called to date. All shares were fully subscribed and paid for except for four
shareholders who hold 200,000 shares did not pay the call money.
▪ The company also issued 150,000 7% Preference Shares at par value of which only RM0.60 has
been called to date. All shares were fully subscribed and received RM80,000 for the shares.
▪ You are required to calculate the amount for the following:
1. Authorized capital
2. Issued capital 5. Un-called capital
3. Unissued capital 6. Paid-up capital
4. Called-up capital 7. Unpaid capital
WHAT IS THE ANSWER?
Authorized capital
Preference Shares= ?
Ordinary Shares = ?
Issued capital Unissued capital
Preference Shares= ? Preference Shares= ?
Ordinary Shares = ? Ordinary Shares=?
Called-up capital Un-called capital
Preference Shares=? Preference Shares=?
Ordinary Shares= ? Ordinary Shares=?

Paid-up capital Unpaid capital

Preference Shares=? Preference Shares=?
Ordinary Shares=? Ordinary Shares=?