Authorized capital means the maximum capital a company could issued as stated in the Memorandum and Articles of Association. The issued capital must not exceed the Authorized Capital unless its amount has been increased, approved in a shareholders' meeting.
There is no entry in respect of this Authorized Capital in the books of the company but only stated in the published financial statements for information only. However, whenever shares are issued, entries have to be made by Dr. bank and Cr. Share Capital when money in.