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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

Reserve Capital is a part of “Uncalled Capital”.

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

Uncalled capital means amount of share not called from 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: Admission of a Partner - Adjustment of Capitals
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