Write short notes on any five of the following: (a) Called up capital (b) Paid up capital (c) Issued capital (d) Poste restante (e) Capital employed (f) Capital owned. – NABTEB QUESTION

ANSWERS

a. Called up capital: This is the amount of money called up on the shares that have been subscribed

b. Paid up capital: This is the actual amount of capital that share holders have paid to the company. At times, shares are paid in installments or when the share holders are called upon to make payment

c. Issued capital: This is the amount of share capital which is actually issued for subscription to members of the public

d. Poste restante: This service is intended for a person travelling out of normal residence. During the period he will be away, he arranges for mails to be addressed to the post office of a place he is going

e. Capital employed: This is the total assets of the business, both fixed and current. This is the total value of the resources used in running the business.

f. Capital Owned: This is the excess value of the assets of a business over the value of its liabilities, both long and short term.