Paid Up Capital

What is Paid Up Capital?

Paid up capital is the amount of capital for which a business has received payment from shareholders.

Paid Up Capital Example

A business is formed with an authorized capital of 100,000 shares of 15.00 each, which is the maximum number of shares the business can issue. The business issues shareholders with 80,000 shares of 15.00 each resulting in an issued capital of 1,200,000, but only initially calls for 10.00 a share giving a called up capital of 800,000.

If all the shareholders pay for their shares then the paid up capital will be the same as the called up capital which is 800,000. However, if for example, only 70,000 shares have been paid for, then the paid up capital will be 70,000 x 10.00 = 700,000.

In summary:

Authorized capital = 100,000 x 15.00 = 1,500,000
Issued capital = 80,000 x 15.00 = 1,200,000
Called up capital = 80,000 x 10.00 = 800,000
Paid up capital = 70,000 x 10.00 = 700,000
Called up capital not paid = 10,000 x 10.00 = 100,000.

For further information see the Wikipedia definition.

Learn a new bookkeeping term

Random bookkeeping terms for you to discover.

Link to this Paid Up Capital Definition

Click in the box to copy and paste this paid up share capital definition link to your site.

Return to the Glossary

Paid Up Capital March 23rd, 2016Team

You May Also Like


Related pages


service tax accounting entriesprinciple of conservatism in accountingeom invoicesalvage value depreciationmileage form templateswhat is a trade debtor on the balance sheetaccrual accounting vs cashformula to find cost of goods soldbookkeeping equationfixed asset turnover ratio interpretationexcel calculate marginis notes payable a debit or creditjournal entries for bad debtsdues and subscriptions definitionpresent value of an annuity tableposting to a general ledgercogs marginfactory overhead accountingformula of working capital turnover ratioprofitability indexwrite off bad debt journal entryaccounting entries for finance leasevertical analysis cash flow statementrent deposit accountingbank reconciliation journal entriesis unearned revenue an assetformulas of accounting ratiosexample of petty cash spreadsheettreatment of deferred tax assets in balance sheetcredit debit chartmarkup price calculatoraccelerated depreciation method examplepayroll exam questionsdefinition of annuity duedefine petty cash bookpresent value of ordinary annuity calculatorexamples of sundry expenses in accountingjournal entry depreciation expenseannual amortization formulamultiple step income statementrecording petty cash transactionsdouble entry bookkeeping examplevoucher entry in accountingpractise balancing equationsis petty cash an asset or expensetabel present valuedirect variable cost definitionhow to calculate prepaid insurance accountingverifiability in accountingdepreciation template excelwhere is unearned revenue recordeddeclare cash dividend journal entryaccounts receivable credit or debitgrant accounting journal entriescash and equivalents turnoversafety stock reorder pointfixed asset turnover industry averageexample of general ledger entries for accountingcompound interest formula continuousdefine amortization in accountingjournal entries for fixed assets and depreciationprice and quantity variancefv annuitymanufactoring overheaddisbursement voucher templatewhat is factoring receivablescash dividends declared on common stockpurchase ledger control accountjournal entry for ending inventorypv table annuity duegrowing annuity calculatorinventory valuation exampleshow to calculate project payback periodfuture value interest factor annuity tablehow to enter fixed assets in quickbooksexamples of accounting conceptsgeneral ledger vs subsidiary ledgerdebit and credit quizcalculate accounts receivable turnoverjournal entries in accounting for interview