Question : Amount of money not received out of called up capital is :
Option 1: Call in advance
Option 2: Calls in arrear
Option 3: Uncalled capital
Option 4: None of the above
Correct Answer: Calls in arrear
Solution : If any of the shareholders have not paid the amount on calls, such an amount may be called as ‘calls in arrears’. Therefore, paid up capital is equal to the called-up capital minus call-in arrears.
Hence the correct answer is option 2.
Question : The part of uncalled capital, to be called only in the liquidation of a company is called:
Option 1: Un-reserved Capital
Option 2: Reserve Capital
Option 3: Capital Reserve
Option 4: Calls-in Arrears
Question : Arrange the following in proper sequence as a type of share capital :
(a) Paid up Capital
(b) Issued Capital
(c) Subscribed Capital
(d) Called up Capital
Option 1: Issued, Called-up, Paid-up, Subscribed
Option 2: Issued, Paid-up, Subscribed, Called-up
Option 3: Issued, Subscribed, Called-up, Paid-up
Question : Interest received on Calls-in-arrear by a Company is considered as------------------.
Option 1: Operating activities
Option 2: Investing Activities
Option 3: Financing Activities
Question : Debentures are redeemed without setting aside an amount to Debentures Redemption Reserve (DRR). It is called redemption ________.
Option 1: Out of capital
Option 2: Out of profit
Option 3: Both 1 and 2
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