Question

On an equity share of rupees 20 the company called of rupees 16 but rupees 14 has been received by the company, equity share capital account will be credited by

1 point

Rupees 2.

Rupee 14

Rupees 20

Rupees 16

​

Answer 1

Answer:

Rupees 16

Explanation:

Equity share capital, also referred to as share capital, is the money a firm raises by selling shares. It is the money that investors and business owners contribute to a company's capital and utilize to grow or scale up the operations of their endeavor

Paid-up capital is distinct from called-up capital in that investors have already made complete payment on Paid-Up capital. The Issuing Entity has sought payment of the Called-Up Capital, but such payment has not yet been made in full.

All funds raised by a business in exchange for common or preferred stock are referred to as share capital. A company's equity funding or share capital may fluctuate over time.

A corporation expands its share capital when it wants to raise more equity and is granted permission to issue more shares.

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Answer 2

Concept Introduction:

The money a company generates by selling shares is known as equity share capital, sometimes known as share capital. It is the cash that investors and financial owners put into an equity stock and use to expand or scale up business activities.

Explanation:

We have been given a question about equity share capital.

We have to find out what will be credited as an equity share capital account.

In contrast to called-up capital, paid-up capital has already received full payment from investors. The Called-Up Capital has been paid in part as requested by the Issuing Entity, but not yet in full. Share capital refers to any funds acquired by a company in return for equity securities. Equity finance or share capital for a corporation may change over time.

Final Answer:

Rupees $16$ will be credited as equity share capital accounts.

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