Accountancy Part AAccounting for Shares

When a company reserve a portion of its uncalled capital to be called…

When a company reserve a portion of its uncalled capital to be called in the event of winding up, such uncalled capital is known as :

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Reserve capital

NCERT (2026-27 edition):
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.”