Question : Reserve capital is not a part of
Option 1: Authorized capital
Option 2: Subscribed capital
Option 3: Unsubscribed capital
Option 4: Issued capital
Correct Answer: Unsubscribed capital
Solution : Answer = Unsubscribed capital
Reserve capital is the capital that a company decides to call from the shareholders at the time of its winding up. It means that the shareholders will pay the amount of unpaid capital when the company calls it to be paid. It also means that the company cannot call the capital that is unsubscribed.
Question : Which of the following statements is/are correct?
Option 1: Authorized Capital < Issued Capital
Option 2: Authorized Capital > Issued Capital
Option 3: Subscribed Capital > Issued Capital
Option 4: None of the above
Question : Issued Capital means-
Option 1: a part of the reserve capital that the company is offering for a subscription.
Option 2: a part of the authorized capital that the company is offering for a subscription.
Option 3: a part of the subscribed capital that the company is offering for a subscription.
Option 4: Both 1 and 2
Question : Which of the following is not shown under the heading "share capital" in a Balance Sheet :
Option 1: Subscribed Capital
Option 2: Issued Capital
Option 3: Reserve Capital
Option 4: Authorised Capital
Question : Name the head of Capital Clause of Memorandum of Association of a company in which the maximum amount of share capital mentioned is called______________.
Option 1: Reserve Capital
Option 2: Subscribed Capital
Option 3: Authorised Capital
Option 4: Issued Capital
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