Question

________ is deducted from the share capital to know paid up value of shares. (Fill in the blank by choosing correct option)
(a) Calls-in-advance
(b) Calls-in-arrears
(c) Forfeited shares
(d) Discount on issue

Answer 1

the correct answer is (A). Calls-in-arrears

Answer 2

Answer:

(b) Calls-in-arrears

Explanation:

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

When the shareholders have  paid all the call amount, the called up capital is the same as the paid-up  capital.

If any of the shareholders have not paid the amount of calls, such an  amount may be called as ‘calls in arrears’.

Therefore, paid-up capital is  equal to the called-up capital minus call in arrears.