Question

Which of the following statements does not relate to 'Reserve Capital:
(A) It is part of uncalled capital of a company.
(B) It cannot be used during the lifetime of a company.
(C) It can be used for writing off capital losses.
(D) It is part of subscribed capital.
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Answer 1

Answer:

1. It is part of uncalled capital of a company.

Answer 2

The correct option is (D). Reserve Capital remains uncalled until a company is winding up or liquidized.

Let's analyze the statements related to Reserve Capital:

• It is analyzed when capital is not called up by an organization for any financial long-term projects or any for any capital expenses that are written-off is called Reserve Capital.
• Subscribed capital refers to the stocks which can be subscribed with the aid of using the traders of the agency.
• For subscribed proportion capital agencies typically get hold of subscriptions from their traders.