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Question

Which capital refers to the paid-up value of the issued capital?

A
Subscribed capital
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B
Reserve capital
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C
Issued capital
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D
None of the above
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Solution

The correct option is A Subscribed capital
Subscribed capital is that part of issued capital which is being subscribed by the shareholders. By, subscribed we mean that they have subscribed for the issued shares and made payment for the same. Subscribed and issued share capital are not necessarily the same.

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