Based on following answer the question.
Bharat Ltd. has been registered with the capital as ₹50,00,000 divided into 5,00,000 shares of ₹10 each. 3,00,000 shares of ₹10 each are offered by the company to the public for subscription, amount payable as ₹4 on application, ₹3 on allotment and the balance on call. The company received application for 2,70,000 shares and the company finalised the allotment accordingly. The company did not make the final call. The Company received all money except allotment money on 5,000 shares held by Rahul. His shares were forfeited.
The portion of Subscribed Capital which has not yet been called up by the company is called __________.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Uncalled capital
Subscribed capital is split into the part the company has called up (asked the shareholders to pay) and the part it has not yet called up. The second part is the uncalled capital; the company can collect it whenever it needs further funds.
Option (1) Paid up capital — Incorrect. It is the part of the called up capital actually received from shareholders.
Option (2) Reserve capital — Incorrect. It is only that part of the uncalled capital which the company has decided to call only on winding up.
Option (4) Called up capital — Incorrect. It is the part of subscribed capital that has already been called up.
NCERT (2026-27 edition): |