Student ID: BC220422297

Name: Mehar Zuhaib Ashfaq

Subject: MGT211 - Introduction to Business

Authorized Capital:
Authorized capital refers to the maximum amount of capital that a company is legally permitted
to issue and allocate among its shareholders. In this case, Alpha Limited has been registered with
an authorized capital of Rs. 500,000, divided into 25,000 ordinary shares of Rs. 20 each. This
represents the total value of shares that the company can potentially issue.

Issued Capital:
Issued capital represents the portion of the authorized capital that a company has actually offered
and sold to the public or private investors. In this case, Alpha Limited has issued 15,000 shares at
the par value of Rs. 20 each. Therefore, the issued capital of the company amounts to Rs.
300,000, calculated as 15,000 shares multiplied by Rs. 20 per share.

Un-Issued Capital:
Un-issued capital refers to the portion of the authorized capital that has not yet been offered or
allocated to any shareholders. Alpha Limited has 10,000 shares that have not been issued to the
public or any other investors. Consequently, the un-issued capital of the company amounts to Rs.
200,000, calculated as 10,000 shares multiplied by Rs. 20 per share.

Subscribed Capital:
Subscribed capital represents the part of the issued capital for which shareholders have applied or
expressed their willingness to purchase. In this case, Alpha Limited received applications for
14,500 shares from the general public. Therefore, the subscribed capital of the company amounts
to Rs. 290,000, calculated as 14,500 shares multiplied by Rs. 20 per share.

Paid-up Capital:
Paid-up capital is the portion of the subscribed capital that shareholders have actually paid for.
Assuming that all the subscribers have made the full payment for their subscribed shares, the
paid-up capital of Alpha Limited is also Rs. 290,000, which represents the amount of money
received from shareholders for their subscribed shares.

It's important to note that the provided information does not cover other types of share capital
such as called-up capital, uncalled capital, reserve capital, and redeemable capital.