Identify the true statement in respect of Reserve Capital.

The correct answer is option 1- It is a portion of uncalled share capital and can be called only in the event of winding up of a company.

A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company. Such uncalled amount is called ‘Reserve Capital’ of the company. It is available only for the creditors on the winding up of a company. It is not shown in the balance sheet of the company.