Reserve share capital means ____________.

Part of authorized capital to be called at beginning

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Portion of uncalled capital to be called only at liquidation

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Over subscribed capital

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Under subscribed capital

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Solution

The correct option is B Portion of uncalled capital to be called only at liquidation
Reserve capital is that part of subscribed capital which is not called up yet.
It will be called up only in case of winding up or liquidation of a company.

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Similar questions

Q. Amount of capital stated in the Memorandum of Association as the share capital of the company is known as -
(1) Subscribed Capital or Authorized Capital
(2) Paid-up or Subscribed Capital
(3) Nominal or Called-up Capital
(4) Nominal or Authorized Capital
The correct answer is-

Q. Is 'Reserve Capital' a part of 'Unsubscribed Capital' or 'Uncalled Capital'?

Is 'Reserve Capital' a part of 'Unsubscriptd Capital' or 'Uncalled Capital'?

Q. The difference between Subscribed Capital and Called-up Capital is called _________.

PRACTICAL PROBLEMS

(Calculation of different types of Capital):

From the following details calculate authorised capital, issued, subscribed, called up and paid up share Capital and also calls in arrear and uncalled capital:

Pankaj Ltd. was formed with a capital of Rs 5,00,000 divided in to 5,000 shares of Rs 100 each. Of these 1,000 shares were issued to the vendor as fully paid in payment of purchase of machinery. 3,000 shares were offered to the public and of these 2,500 shares were applied and allotted. Rs 10 was payable on application and Rs 25 on allotment. The balance was yet to be called. All the money called up was duly received with the exception of allotment money on 300 shares.

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Reserve share capital means ____________.

The correct option is B Portion of uncalled capital to be called only at liquidationReserve capital is that part of subscribed capital which is not called up yet. It will be called up only in case of winding up or liquidation of a company.

The correct option is B Portion of uncalled capital to be called only at liquidation
Reserve capital is that part of subscribed capital which is not called up yet.
It will be called up only in case of winding up or liquidation of a company.