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Subscribed Capital

The requested or subscribed capital is that part of the issued capital of the company for which the public sends their applications to the company and is accepted by the company. In other words, the part of the issued capital which is taken over by the public is called requested capital. If all the issued capital is taken over by the public, then in this case the issued capital and the requested capital cannot exceed.

The requested capital is written off in the balance sheet as follows

(1) When the company has received applications from the public for shares less than the number of regular shares,

In such a situation, the issued and requested capital are recorded separately in the balance sheet.

(2) When the company has received applications from the public for shares equal to the number of issued shares, then in such a situation the issued capital becomes the requested capital and the requested capital is shown under the head Issued and Subscribed. (3) When the company receives applications from the public for more shares than the number of shares issued, then allotment of shares is done only up to the number of shares issued. So the issued capital should be

The capital requested is shown under the heading ‘Issued and Subscribed’.

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