Question

The capital on which dividend is paid. Answer in a word / phrase / term.

Answer 1

Reserve Capital is the capital which would be called up by the company only at the time of winding up of the business. And dividend is paid to Shareholders on the basis of their paid up values

Thus, dividend is paid to Shareholders of reserve Capital in the normal way as the other shareholders basis the amount paid up & they do not have to contribute capital every year as reserve capital would be called up only at the time of winding up ;

Hope this clears your doubt;

Answer 2

PAID UP SHARE CAPITAL. ..✓✓✓