Match List I with List II List I List II A. Share Capital I. Will be…

Match List I with List II

List I	List II
A. Share Capital	I. Will be called at the time of winding up
B. Reserves & Surplus	II. Calls in advance
C. Reserve Capital	III. Subscribed but not fully paid
D. Current liabilities	IV. Sinking fund

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → A-III, B-IV, C-I, D-II

A. Share Capital — this matches III. Subscribed but not fully paid. It is one of the classes of share capital shown in the notes to the balance sheet.

B. Reserves & Surplus — this matches IV. Sinking fund. A sinking fund is an amount set aside out of profits for a future purpose such as redemption, so it is part of reserves and surplus.

C. Reserve Capital — this matches I. Will be called at the time of winding up. It is the part of uncalled capital that the company has resolved to call only on winding up.

D. Current liabilities — this matches II. Calls in advance. Money received before a call is made is owed back to the shareholder until the call falls due.

NCERT (2026-27 edition):
Share Capital – “… i) The number and amount of share authorised. ii) The number of shares issued, subscibed, fully paid and subscribed but not fully paid.”

NCERT (2026-27 edition):
Reserves and Surplus – “A reserve specifically represented by earmarked investments shall be termed as “Fund”.”

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):
Calls in Advance – “… The balance in ‘Calls in Advance’ account is shown as a separate item under the title Equity and Liabilities in the company’s balance sheet under the head ‘current liabilities’, as sub-head ‘others current liabilities’.”