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Question
Give one word / Term / phrase for the following statement :
The capital which is not disclosed in the balance sheet.
Solution
Reserve Capital
Explanation: It represents the portion of subscribed capital that remains uncalled except in case of winding up or at the time of liquidation. It does not form a part of a company’s Balance Sheet.
As per Section 99 of the Companies Act, 1956, a company can create reserve capital by passing a special resolution.
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RELATED QUESTIONS
Securities premium can also be utilized for three other purposes besides
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'Suvidha Ltd.' is registered with an authorised capital of Rs 10,00,00,000 divided into 10,00,000 equity shares of Rs 100 each. The company issued 1,00,000 shares for public subscription. A shareholder holding 100 shares, failed to pay the final call of Rs 20 per share. His shares were forfeited. The forfeited shares were re-issued at Rs 90 per share as fully paid up.
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A gift given by a legal representative as per the will is called ________.
Answer in one Sentence only :
What is authorised capital?
Answer in one Sentence only :
State the meaning of issued capital.
Answer in one Sentence only :
Write the meaning of equity share capital.
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What is meant by convertible preference share?
Answer in one Sentence only :
Which preference shares are called cumulative preference shares?
Give one word / Term / phrase for the following statement :
Capital stated in the capital clause of Memorandum of Association.
Give one word / Term / phrase for the following statement :
The portion of subscribed capital which has not yet been called up.
Give one word / Term / phrase for the following statement :
Preference share on which arrears of dividend accumulate.
Give one word / Term / phrase for the following statement :
The capital on which dividend is paid.
Give one word / Term / phrase for the following statement :
Shares having first right on surplus assets at the time of liquidation.
Select the most appropriate answer from the alternatives given below and rewrite the sentence :
Nominal value of shares allotted to the public is called _____________ capital.
(Calculation of different types of Capital):
From the following details calculate authorised capital, issued, subscribed, called up and paid up share Capital and also calls in arrear and uncalled capital :
Pankaj Ltd. was formed with a capital of Rs 5,00,000 divided in to 5,000 shares of Rs 100 each. Of these 1,000 shares were issued to the vendor as fully paid in payment of purchase of machinery. 3,000 shares were offered to the public and of these 2,500 shares were applied and allotted. Rs 10 was payable on application and Rs 25 on allotment. The balance was yet to be called. All the money called up was duly received with the exception of allotment money on 300 shares
What is the authorised capital?
Assertion (A): Authorised share capital is not issued to the public at once.
Reason (R): Companies do not exhaust their authorised capital in the beginning but only a part of the authorised capital is issued for public subscription. Rest of the authorised capital is raised by the company in a phased manner depending on the need for funds.
A company has:
Under the provisions of the Companies Act, company can issue:
Assertion (A): The equity shareholders are paid dividend on the shares held by them.
Reason (R): As the equity shareholders are the owners and dividend form their earning.
