What is the 'Called up capital' of a company?
Answer & explanation
Correct answer: option 3
Called up Capital: It is that part of the subscribed capital which has been
called up on the shares, i.e., what the company has asked the shareholders
to pay. The company may decide to call the entire amount or part of the
face value of the shares, For example, if the face value (also called nominal
value) of a share allotted is Rs. 10 and the company has called up only Rs.
7 per share, in that scenario, the called up capital is Rs. 7 per share. The
remaining Rs. 3 may be collected from its shareholders as and when needed.