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Is 'Reserve Capital' a part of 'Unsubscribed Capital' or 'Uncalled Capital'? - Accountancy

Short Note

Is 'Reserve Capital' a part of 'Unsubscribed Capital' or 'Uncalled Capital'?

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Solution

Unsubscribe capital stands for share issued but not subscribed by people.

Uncalled capital means amount of share not called from the public.

Reserve capital means the part of share which will never be called until winding up of company.

Hence reserve capital is part of uncalled capital.

Concept: Change in the Profit Sharing Ratio Among the Existing Partners - Treatment of Reserves and Accumulated Profits
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