Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
Can the Paid-up capital of the company be less than the Called-up capital of the company in any case?
Options:
Yes
No
Not possible
Depend on the company
Correct Answer:
Yes
Explanation:
Paid up capital is the part of called up capital actually paid or credited by shareholders on the issued shares. Mathematically, Paid up capital = Called up capital – Calls in Arrears. Paid up capital represents the money that the company has not borrowed. Also, it is the total amount of money that the company receives from shareholders