Question

Match List-I with List-II

List-I	List-II
(A) Share capital	(I) Will be called at the time of winding up
(B) Reserves and surplus	(II) Calls in advance
(C) Reserve capital	(III) Subscribed but not fully paid
(D) Current liabilities	(IV) Sinking fund

Choose the correct answer from the options given below:

• (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
• (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
• (A) - (III), (B) - (IV), (C) - (II), (D) - (I)
• (A) - (IV), (B) - (III), (C) - (II), (D) - (I)

Answer 1

The Correct Option is A

To resolve the matching exercise between List-I and List-II, the definitions and interrelationships of the terms must be established:

• Share Capital: Represents the aggregate value of a company's issued shares. It is often linked to capital shareholders have pledged but not fully remitted, aligning with "Subscribed but not fully paid." This corresponds to (III).
• Reserves and Surplus: Encompasses retained profits or savings earmarked for future company requirements, frequently held in dedicated sinking funds. Consequently, this aligns with (IV).
• Reserve Capital: Denotes the portion of uncalled share capital that a company can demand during liquidation, matching (I).
• Current Liabilities: Includes short-term financial obligations of a company, such as "Calls in advance," which signifies shareholder prepayments on future share call obligations. This corresponds to (II).

The determined matching is: (A) - (III), (B) - (IV), (C) - (I), (D) - (II)