Whenever the company requires capital, it invites the application from the public along with some money. After the applications are received, the company issues the shares to the applicant. Therefore, the subscribed capital is the paid up amount of shares as allotted by the company as on date of preparation of balance sheet. It also includes the bonus shares. Bonus shares are issued to the existing share holders. Fully paid up shares, allotted against some contract, without receiving the cash are also come under subscribed capital.

RELATED TERMS: