Q.That part of share capital which can be called up only on the winding up of a company is called :

Capital called up only on the winding up of a company is Reserve capital — option (c).

Reserve capital is that part of the uncalled share capital which a company, by a special resolution, decides will be called up only in the event of winding up and for the purpose of meeting its liabilities. It acts as a cushion for creditors.

It must not be confused with the other terms:

• Capital reserve — a reserve created out of capital profits (a different item entirely).
• Authorised capital — the maximum capital a company is allowed to issue. …

Statement (d) is false: in under-subscription subscribed capital is less than issued capital, not more.

In the Tamil Nadu HSC Class-12 Accountancy syllabus, the kinds of share capital rank as: authorised ≥ issued ≥ subscribed ≥ called-up ≥ paid-up. Testing each statement:

• (a) Reserve capital can be called only at the time of winding up — true.
• (b) Issued capital can never exceed authorised capital — true (a company cannot issue more than it is authorised to).
• (c) Paid-up capital is part of called-up capital — true (paid-up = called-up minus calls-in-arrears). …

Share capital callable only on winding up is reserve capital.

In the Tamil Nadu HSC Class-12 Accountancy syllabus, a company may by special resolution decide that a part of its uncalled capital shall not be called except in the event of, and for the purposes of, winding up. This portion is called reserve capital.

…

Capital callable only on winding up = Reserve capital — option (a).

Reserve capital is the part of the uncalled share capital that a company, by special resolution, decides to call up only in the event of its winding up. It acts as a cushion for creditors at liquidation.

Do not confuse it with the distractors:

• (b) Authorised capital — the maximum capital a company is permitted to raise. …