Company Accounts

Share Capital

Easy

common

Which of the following indicate the correct meaning of Reserve Capital?

That portion of the issued capital which has not yet been subscribed.

It is that portion of the called up capital which has been actually received from the shareholders.

It is a portion of uncalled capital to be called only at liquidation of company.

It is that part of the issued capital which has been actually subscribed by the public.

✅ Correct Option: 3

Reserve Capital is that part of the uncalled capital which a company decides, by special resolution, not to call except in the event of winding up. It is kept aside as a cushion for creditors at liquidation. It cannot be charged as a security for any loan and is not disclosed in the balance sheet.

2026: 20 May Shift 1

200 shares of Rs.100 each issued at a premium of Rs.10 were forfeited for the non-payment of allotment money of Rs.60 per share including premium. The first and final call of Rs.20 per share on these shares were not made. The forfeited shares were reissued at Rs.70 per share as fully paid-up. Find the amount of capital reserve.

2026: 21 May Shift 1

Mukesh Ltd. offered 4,00,000 shares, of Rs. 10 each to the public for subscription, to be received as Rs. 2 on application, Rs. 3 on allotment, Rs. 3 on first call and the balance on final call. The company received applications for 4,50,000 shares. The company finalised the allotment of 4,00,000 shares and rejected applications for 50,000 shares. The company did not make the final call. The company received all the amount except on 20,000 shares where call money has not been received. The amount of share capital that will be shown in the balance sheet of Mukesh Ltd. as:

2026: 31 May Shift 1

In the case of companies limited by shares, the liability of its members is:

2022: 23 Aug Shift 2

Securities Premium Reserve as per section 52(2) of the companies Act 2013 can be used :

(A) To write-off preliminary expenses of the company

(B) To issue fully paid bonus shares to the extent not exceeding unissued share capital of the company

(D) To write off discount allowed on the goods sold on credit

Choose the correct answer from the options given below :

2026: 6 June Shift 1

Arrange the following in the sequence when shares are issued for consideration other than cash in the books of purchaser:

(A) Shares capital is credited for shares issued to vendor

(B) Assets aquired are debited

(D) Vendor's Account debited with issue of shares

Choose the correct answer from the options given below:

2026: 13 May Shift 1

Consider the given steps below for Issue of Shares :-

(A) Receipt of Applications

(B) Allotment of Shares

(D) Receipt of Minimum Subscription

Choose the correct sequence of above steps from the options given below:

Which of the following indicate the correct meaning of Reserve Capital?

Solution

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