Question

A limited provides you the following information, Equity share capital, call up Rs. $4,00,000$ Calls in advance Rs. $25,000$ Calls in arrears Rs. $40,000$. The amount of paid up capital to be shown in the Balance Sheet of A Limited will be?

• A. Rs. $3,35,000$
• B. Rs. $3,85,000$
• C. Rs. $3,60,000$
• D. Rs. $4,25,000$

Answer 1

The correct option is C Rs. $3,60,000$

Paid up capital is the amount of money received from shareholders in exchange of shares. The amount of paid up capital is 4,00,000-40,000 = 3,60,000

The calls in arrears is the money not received.

Calls in advance does not form part of paid up capital.