Reserve capital is that part of .............. capital which cannot be called except at the time of winding up of the company.

Question

Alfa Ltd. offered for public subscription 50,000 equity shares of ₹ 10 each at ₹ 110 per share. The entire amount was payable on application. Applications were received for 48,000 shares and allotment was made to all the applicants. The amount received on application will be:

Answer 1

Reserve capital is the portion of uncalled capital a company designates for call exclusively during liquidation or winding up. This serves as a safeguard to guarantee funds for creditors in such events.

Reserve capital is that part of .............. capital which cannot be called except at the time of winding up of the company.

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The Correct Option is C

Solution and Explanation

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