Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
What is the difference between subscribed capital and the called-up capital of a company?
Options:
Calls-in-arear
Suspense A/c
Calls-in-advance
Uncalled capital
Correct Answer:
Uncalled capital
Explanation:
Subscribed capital is the capital that is allotted to the public where as called up capital is that part of subscribed capital that is called by the company to pay. So, the difference between the two called uncalled capital which can be called by the company anytime or when it needs.