Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

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, Rs 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 excepts 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 __________.

Options:

Paid up capital

Reserve capital

Uncalled up capital

Called up capital

Correct Answer:

Uncalled up capital

Explanation:

The correct answer is Option (3) - Uncalled up capital.

The portion of Subscribed Capital which has not yet been called up by the company is called "Uncalled up capital."