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The difference between Subscribed capital and called up Capital is called:
- a)Calls-in-arrear
- b)Calls-in-advance
- c)Uncalled capital
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
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The difference between Subscribed capital and called up Capital is cal...
Difference between Subscribed Capital and Called Up Capital
Subscribed capital refers to the portion of the authorized capital that the shareholders have agreed to subscribe but have not yet been called up by the company. On the other hand, called-up capital refers to the amount of the subscribed capital that the company has already demanded from the shareholders.
Uncalled Capital
The difference between subscribed capital and called-up capital is known as the uncalled capital. It represents the amount of money that the company can still demand from the shareholders in the future. The uncalled capital remains a liability of the shareholders until it is called up by the company.
Calls-in-arrear, Calls-in-advance
Calls-in-arrear refer to the situation where a shareholder has not paid the demanded amount of called-up capital. In contrast, calls-in-advance refer to the situation where a shareholder has paid more than the demanded amount of called-up capital. Both of these situations are uncommon in practice.
Conclusion
In conclusion, the difference between subscribed capital and called-up capital is known as uncalled capital. It represents the amount of money that the company can still demand from the shareholders in the future. Calls-in-arrear and calls-in-advance are the situations that may arise when shareholders fail to pay or overpay the called-up capital.
Subscribed capital refers to the portion of the authorized capital that the shareholders have agreed to subscribe but have not yet been called up by the company. On the other hand, called-up capital refers to the amount of the subscribed capital that the company has already demanded from the shareholders.
Uncalled Capital
The difference between subscribed capital and called-up capital is known as the uncalled capital. It represents the amount of money that the company can still demand from the shareholders in the future. The uncalled capital remains a liability of the shareholders until it is called up by the company.
Calls-in-arrear, Calls-in-advance
Calls-in-arrear refer to the situation where a shareholder has not paid the demanded amount of called-up capital. In contrast, calls-in-advance refer to the situation where a shareholder has paid more than the demanded amount of called-up capital. Both of these situations are uncommon in practice.
Conclusion
In conclusion, the difference between subscribed capital and called-up capital is known as uncalled capital. It represents the amount of money that the company can still demand from the shareholders in the future. Calls-in-arrear and calls-in-advance are the situations that may arise when shareholders fail to pay or overpay the called-up capital.
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The difference between Subscribed capital and called up Capital is called:a)Calls-in-arrearb)Calls-in-advancec)Uncalled capitald)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
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