Question

The excess of called up capital over paid up capital is
(A) Calls in advance
(B) Calls in arrears
(C) Under Subscription
(D) None of the above​

Answer 1

Answer:

Calls in arrears

Explanation:

Called up capital is more than paid up capital which means the company received less money than what it demanded so in the books of company it will be recorded as calls in arrears

Answer 2

Answer:

The excess of called up capital over paid up capital is called Calls In Arrears.

Called up capital is greater than paid up capital, which means the company received less money than it requested. This will be shown as calls in arrears in the company's books.

Explanation:

The part of called-up capital known as "paid up capital" is what the shareholders actually pay.

In other words, paid-up capital is the total amount of money that shareholders actually pay when the corporation calls them up or makes a payment demand.

Below are the differences between Paid up capital and Called up capital

Paid-up capital is distinct from called-up capital in that investors have already made complete payment on Paid-Up capital.

The outstanding share capital that stockholders owe but have not paid is known as called-up capital.

Paid-up capital is any sum of money that investors have already contributed in exchange for equity shares.

Share capital can be divided into approved share capital and issued share capital in addition to called-up share capital and paid-up share capital.

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