Question

Which of the following should be deducted from the share capital to find out paid up capital?

A) Calls-in Advance

B) Calls in arrears

C) Securities premium

D) Bonus
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Answer 1

Answer:

The paid-up capital is calculated after deducting those amounts which are yet to be paid by the shareholders, that is, the calls in arrear is that deductible amount. Hence, call in arrear is the amount to be deducted during the calculation of paid-up share capital