Question:medium
‘Reserve Capital’ can be utilised:
‘Reserve Capital’ can be utilised:
Show Hint
Reserve capital is a special uncalled capital reserved strictly for company liquidation.
Updated On: Feb 9, 2026
- any time during the life of the company.
- only at the time of winding up of the company.
- to issue fully paid bonus shares.
- to provide for premium on the redemption of preference shares.
Show Solution
The Correct Option is B
Solution and Explanation
Reserve capital is uncalled capital designated for withdrawal solely upon the company's liquidation, rendering it inaccessible during its operational lifespan.Final Answer: exclusively during the company's liquidation.
Was this answer helpful?
0
Top Questions on Accounting for Share Capital
- 'Share Forfeiture Account' will appear in the 'Notes to Accounts' at:
- CBSE Class XII - 2026
- Accountancy
- Accounting for Share Capital
- The amount of 'Share Capital' presented in the Balance Sheet of Diwan Ltd. will be:
- CBSE Class XII - 2026
- Accountancy
- Accounting for Share Capital
- If all the forfeited shares are reissued at ₹30 per share, fully paid-up, the amount transferred to 'Capital Reserve' will be:
- CBSE Class XII - 2026
- Accountancy
- Accounting for Share Capital
- Calls in arrears of the company amounted to :
- CBSE Class XII - 2026
- Accountancy
- Accounting for Share Capital
- Want to practice more? Try solving extra ecology questions todayView All Questions
