Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
The uncalled amount on shares which is not shown in the balance sheet is known as:
Options:
Reserve Capital
Capital Reserve
Calls in Arrears
Calls in Advance
Correct Answer:
Reserve Capital
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.