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Question

Give one word / Term / phrase for each of the following statement :

The capital which is not disclosed in the balance sheet.

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Solution

Reserve Capital

Explanation: It represents the portion of subscribed capital that remains uncalled except in case of winding up or at the time of liquidation. It does not form a part of a company’s Balance Sheet.
As per Section 99 of the Companies Act, 1956, a company can create reserve capital by passing a special resolution.

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