Question

That part of capital which is uncalled capital of the company and can be called up only in the event of its winding up of a company is ________.

Options

• Nominal capital

• Issued capital

• Reserve capital

• Capital reserve

Answer 1

That part of capital which is uncalled capital of the company and can be called up only in the event of its winding up of a company is Reserve capital.

Explanation:

Reserve Capital is the uncalled portion of subscribed capital that can only be called up by the firm in the event of an emergency, such as winding-up. Reserve capital is represented as subscribed but not entirely paid up under the head subscribed but not fully paid up.