What is a paid-in capital

Called-in, outstanding contributions to subscribed capital

We consider the following

Click here to expandM-AG holds all voting rights in T-GmbH. Their subscribed capital is € 2,000,000, but only 25% of this has been paid up. 40% of the unpaid capital has already been called in.

Present the accounting impact of the required debt consolidation.

The situation for the subsidiary GmbH is as follows:

subscribed capital € 2,000,0000

paid-in capital € 500,000

= unpaid capital € 1,500,000

Called-in, unpaid capital € 600,000

= unclaimed capital € 900,000

We obtain

Balance sheet subsidiary AG

assets

liabilities

Current assets

Equity

Receivables and other assets

Subscribed capital

2.000.000,00 €

Called-in but not yet paid-in capital

600.000,00 €

minus unclaimed deposits

900.000,00 €

called-in capital

1.100.000,00 €

and

Balance sheet parent company

assets

liabilities

Capital assets

liabilities

Financial assets

other liabilities

Shares in affiliated companies

1.100.000,00 €

Called-in but not yet paid-in capital

600.000,00 €