Answered: correct regarding the paid up capital.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q30

Identify the statement that is correct regarding the paid up capital.

Select one:

a. It is that portion of the called up capital which has been actually received from the shareholders. When the shareholders have paid the entire call amount, the called up capital is the same to the paid up capital

b. If any of the shareholders has not paid amount on calls, such an amount may be called as ‘calls in arrears’. Therefore, paid up capital is equal to the called-up capital plus call in arrears.

c. If any of the shareholders has not paid amount on calls, such an amount may be called as ‘calls in arrears’. Therefore, paid up capital is equal to the called-up capital divided by call in arrears.

d. It is that portion of the uncalled up capital which has been actually received from the shareholders. When the shareholders have paid the entire call amount, the called up capital is the same to the paid up capital

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