Question

Which of the following should be deducted from the share capital to find out paid up capital?

• A. Calls in advance
• B. Calls in arrear
• C. Securities Premium
• D. Bonus

Answer 1

Answer:

B. Calls in arrear

The paid up capital is calculated after deducting the call-in-arrear from the share capital. This is because the call-in-arrear is the amount which has to be paid by shareholders in near future due to their inability to pay the amount now.