Solution 14.2

Issued share capital is the amount of authorised share capital actually issued and allotted to shareholders.

Called-up capital is the amount of capital payment which has actually been demanded by the company.

Paid-up capital is the amount of the called-up capital that has been actually paid over to the company by the shareholders.

Authorised share capital is the maximum amount of shares (as stated in the Memorandum and Articles of Association of the company) a company is entitled to issue.

Loan capital refers to the loans acquired by a company. Loans can be acquired in two ways:

1. Approaching your bank in the normal way

2. The company issuing its own loans/debentures