Which of the following should be deducted from the share capital to find out paid up capital?
ACalls in advance
BCalls in arrear
CSecurities Premium
DBonus
Answer:
B. Calls in arrear
Read Explanation:
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.
