Match List – I with List – II. LIST - I LIST - II A. Reserve Capital… | Accountancy Part A CUET question

Match List – I with List – II.

LIST - I	LIST - II
A. Reserve Capital of a company	I. Memorandum of Association
B. Capital Reserve of a company	II. Created out of capital Gain
C. Subscribed Capital of a company	III. Allotted Capital
D. Nominal Capital of a Company	IV. Not shown in Balance Sheet

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → A-IV, B-II, C-III, D-I

(A) Reserve Capital of a company — this matches (IV) Not shown in Balance Sheet. It is uncalled capital that can be called only on winding up, so it never appears as an amount in the Balance Sheet.

(B) Capital Reserve of a company — this matches (II) Created out of capital Gain. It is built from capital profits.

(C) Subscribed Capital of a company — this matches (III) Allotted Capital. The company allots shares only for what is subscribed.

(D) Nominal Capital of a Company — this matches (I) Memorandum of Association. Nominal (authorised) capital is the amount fixed by the Memorandum.

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.”

NCERT (2026-27 edition):
Reissue of Forfeited Shares – “… The balance, if any, left in the Share-Forfeited Account relating to reissued Shares, should be treated as capital profit and transferred to Capital Reserve Account.”

NCERT (2026-27 edition):
Authorised Capital – “… Authorised capital is the amount of share capital which a company is authorised to issue by its Memorandum of Association. The company cannot raise more than the amount of capital as specified in the Memorandum of Association. It is also called Nominal or Registered capital.”

NCERT (2026-27 edition):
Subscribed Capital – “… It is that part of the issued capital which has been actually subscribed by the public. When the shares offered for public subscription are subscribed fully by the public the issued capital and subscribed capital would be the same. It may be noted that ultimately, the subscribed capital may be equal to or less than issued capital. In case the number of shares subscribed is less than what is offered, the company allots only the number of shares for which subscription has been received. In case it is higher than what is offered, the allotment will be equal to the offer.”