Question

Match List-I with List-II

List-I	List-II
(A) Share capital	(I) Will be called at the time of winding up
(B) Reserves and surplus	(II) Calls in advance
(C) Reserve capital	(III) Subscribed but not fully paid
(D) Current liabilities	(IV) Sinking fund

Choose the correct answer from the options given below:

• (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
• (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
• (A) - (III), (B) - (IV), (C) - (II), (D) - (I)
• (A) - (IV), (B) - (III), (C) - (II), (D) - (I)

Answer 1

The Correct Option is A

To solve the matching problem between List-I and List-II, we need to understand the definitions and relationships between the terms:

• Share Capital: This refers to the total value of the shares that a company issues. It is often tied to the capital that shareholders have agreed to pay the company but might not have fully paid yet, corresponding to the description of "Subscribed but not fully paid." Hence, matches with (III).
• Reserves and Surplus: These refer to the profits that are retained in the company or saved for future needs, commonly held in a sinking fund for specific purposes. Therefore, this matches with (IV).
• Reserve Capital: It is the portion of the uncalled share capital that a company calls upon in the event of winding up, which matches with (I).
• Current Liabilities: These include amounts owed by a company that are to be paid in the short-term, such as "Calls in advance," indicating early payments made by shareholders towards upcoming calls on their shareholdings. Hence, matches with (II).

The correct match is: (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Answer 2

To solve the problem, we need to correctly match items from List-I with their appropriate descriptions from List-II. We'll analyze each term and its possible match:

• (A) Share capital - This typically refers to the amount of capital raised by a company through the sale of shares. The correct match is (III) "Subscribed but not fully paid" because share capital involves shares that have been subscribed but may not be fully paid yet by shareholders.
• (B) Reserves and surplus - This term refers to the retained earnings and other reserves that a company sets aside for future use or unforeseen expenses. This matches with (IV) "Sinking fund," which is a reserve fund accumulated to pay off a debt or an asset.
• (C) Reserve capital - This is the part of the authorised capital of a company which is not called up by the company except in the event of winding up. This matches with (I) "Will be called at the time of winding up."
• (D) Current liabilities - These are a company's short-term financial obligations that are due within one year. The suitable match is (II) "Calls in advance," which are amounts received in advance on calls from shareholders that are due within a short period.

Thus, the correct answer matches are:

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)