Reserve Capital: Is it a Part of Unsubscribed Capital or Uncalled Capital?

Definition of Reserve Capital
Reserve capital refers to the amount of money that a company sets aside from its profits, which is not meant for distribution to shareholders as dividends. This amount is used to strengthen the financial position of the company by increasing its reserves.

Difference between Unsubscribed Capital and Uncalled Capital
Unsubscribed capital refers to the amount of capital that has not yet been subscribed to by investors. In other words, it is the amount of capital that a company has authorized to issue but has not yet been issued.

On the other hand, uncalled capital refers to the amount of capital that has been issued to investors but has not yet been called for payment. This means that the investors have not yet paid the entire amount of capital that they have subscribed to.

Is Reserve Capital a Part of Unsubscribed Capital or Uncalled Capital?

No, reserve capital is not a part of unsubscribed capital or uncalled capital. Reserve capital is a separate concept that refers to the retained earnings of a company that are not distributed as dividends. These earnings are kept aside to strengthen the financial position of the company and to meet future contingencies.

Conclusion
In conclusion, reserve capital is not a part of unsubscribed capital or uncalled capital. While unsubscribed capital refers to the amount of capital that has not been subscribed to by investors, uncalled capital refers to the amount of capital that has been issued but not yet paid for by investors. Reserve capital, on the other hand, refers to the retained earnings of a company that are kept aside to strengthen the financial position of the company.