Accountancy Part AAccounting for Shares

It is available only for the creditors on winding up of the company.

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Reserve capital

NCERT (2026-27 edition):
Categories of Share Capital – “… • Reserve Capital: 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 winding up of the company.”