Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
What is Reserve share capital ?
Options:
Part of authorised capital to be called at the beginning.
Portion of uncalled capital to be called only at liquidation
Over subscribed capital
Under subscribed capital
Correct Answer:
Portion of uncalled capital to be called only at liquidation
Explanation:
Reserve Capital shows the part of the authorized capital that has not yet called up by the company and is available for drawing, if necessary.