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Question

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

A
Calls-in-arrear
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B
Calls-in-advance
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C
Uncalled capital
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D
None of the above
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Solution

The correct option is C Uncalled capital
Uncalled capital is the capital which is not yet called by the company. The subscribed capital is the capital that is subscribed by the public and called up capital is the capital called up by the company. The difference between this two is uncalled capital.

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