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easyMCQCUET Accountancy 2025 3 June Shift 12026Accountancy
1 mark

Identify the true statement in respect of Reserve Capital :-

  1. A
    It is a portion of uncalled share capital and can be called only in the event of winding up of a company.
  2. B
    It is a portion of uncalled share capital and can be called at any time during the lifetime of a company.
  3. C
    It is a portion of un-paid share capital and can be called only in the event of winding up of a company.
  4. D
    It is a portion of un-subscribed share capital and can be called at any time during the lifetime of a company.

Solution & Step-by-step Explanation

Reserve Capital is that part of uncalled share capital which a company has resolved, through a special resolution, not to call up except in the event of and for the purpose of the company being wound up (liquidation). It cannot be called up during the active lifetime of the company.

Practice this question

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Identify the true statement in respect of Reserve Capital :-
A
It is a portion of uncalled share capital and can be called only in the event of winding up of a company.
B
It is a portion of uncalled share capital and can be called at any time during the lifetime of a company.
C
It is a portion of un-paid share capital and can be called only in the event of winding up of a company.
D
It is a portion of un-subscribed share capital and can be called at any time during the lifetime of a company.

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