Calls in Arrears

Q.

As per Companies Act, 2013, the maximum rate of interest on calls in arrears is_________.

1. 11%

2. 10%

3. 12%

4. 9%

Q. X and Y are partners sharing profits in the ratio of 3 : 2 with capitals of ₹ 80, 000 and ₹ 60, 000 respectively. Interest on capital is agreed @ 5% p.a. Y is to be allowed an annual salary of ₹ 6, 000 which has not been withdrawn. Profit for the year ended 31st march, 2018 before interest on capital but after chargingYs salary amounted to ₹ 24, 000.
A provision of 5% of the profit is to be made in respect commission to the manager. Prepare an account showing the allocation profits.

Q.

The subscribed capital of a company is Rs. 80, 00, 000 and the nominal value of the share is Rs. 100 each There were no calls in Arrear till the final call was made, the final call made was paid on 77, 500 shares only. The balance in the calls in Arrear amounted to 62, 500. Calculate the final call on share.

1. Rs. 7

2. Rs. 20

3. Rs. 22

4. Rs. 25

Q.

Interest on calls in arrears is charged at the rate of :

(a) 5% (b) 10% (c) 7.5% (d) 15%

Q. X and Y are partners in a firm sharing profits in the ratio of 3 : 2. The have a manager, Z, who gets ₹ 10, 000 p.m. salary plus commission of 5% of the profit after charging his salary and commission, Now, they decide to admit Z as a partner, giving him 1/5th share in the profits of the firm. Any excess amount which Z receives as a partner (over his salary and commission) will be borne by X. The profit for the year ended 31st March, 2018 amounted to ₹ 8, 40, 000 after charging Z's salary. Prepare Profit and Loss Appropriation Account showing the division of profit for the year.

Q.

When any shareholder does not pay his call money to company on his due date. This is known as ?

1. Undersubscription of shares

2. Calls in arrears

3. Oversubscription of shares

4. Calls in advance

Q.

Following amounts were payable on issue of shares by a company: Rs. 3 on application, Rs. 3 on allotment, Rs. 2 on first call and Rs. 2 on final call. X holding 500 shares paid only application and allotment money whereas Y holding 400 shares did not pay final call. Amount of Calls in arrear will be :

1. Rs. 3, 800

2. Rs. 2, 800

3. Rs. 1, 800

4. Rs. 6, 200

Q.

Is borewell a fixed asset?

Q. Calls is arrears is a/an for the company.

1. asset
2. liability
3. expense
4. income

Q. X and Y are partners in a firm. X is entitled to a salary of Rs. 10, 000 per month and commission of 10% of the net profit after partners' salaries but before charging commission. Y is entitled to a salary of Rs. 25, 000 p.a. and commission of 10% of the net profit after charging all commission and partners' salaries. Net profit before providing for partners' salaries and commission for the year ended 31st March, 2018 was Rs. 4, 20, 000. Show, distribution of profit.

Q. In case of default in the payment of allotment money by the shareholder, the share allotment account is credited with amount.

1. total allotment
2. default
3. actual
4. excess

Q.

When shareholders make default in the payment of allotment money or call money due from them, it is termed as__________

1. Calls in Arrears

2. Calls in Advance

3. Undersubscription

4. Oversubscription

Q.

When defaulter shareholders pay their default amount of allotment money, then the journal entry is-

1. Calls in Arrears A/c Dr.

   To Bank A/c

2. Bank A/c Dr.

   To Calls in Arrears A/c

3. Bank A/c Dr.

   To Share Allotment A/c

4. Share Allotment A/c Dr.

   To Bank A/c

Q.

PRACTICAL PROBLEMS

(Calculation of different types of Capital):

From the following details calculate authorised capital, issued, subscribed, called up and paid up share Capital and also calls in arrear and uncalled capital:

Pankaj Ltd. was formed with a capital of Rs 5, 00, 000 divided in to 5, 000 shares of Rs 100 each. Of these 1, 000 shares were issued to the vendor as fully paid in payment of purchase of machinery. 3, 000 shares were offered to the public and of these 2, 500 shares were applied and allotted. Rs 10 was payable on application and Rs 25 on allotment. The balance was yet to be called. All the money called up was duly received with the exception of allotment money on 300 shares.

Q.

The liability of a shareholder in a company is limited to the extent of the _________ of shares

1. Application money

2. Allotment money

3. Issue Price

4. Market Price

Q. When shareholders make default in the payment of allotment money or call money due from them, it is termed as .

1. under subscription
2. over-subscription
3. calls in arrears
4. calls in advance

Q. X and Y are partners in a firm sharing profits in the ratio of 3 :2.They have a manager, Z, who gets Rs.10, 0000 salary plus commission of 5% of the profit after charging his salary and commission. Now, they decided to admit Z as a partner, giving him 1/5th share in the profits of the firm. Any excess amount which Z received as a partner (over his salary and commission) will be borne by X. The profit for the year ended 31st Ma 2018 amounted to Rs. 8, 40, 000 after charging Z's salary. Prepare Profit and Loss Appropriation Account showing the division of profit for the year.

Q. Select the most appropriate answer from the alternatives given below and rewrite the sentence :

If articles are silent regarding interest on calls-in-arrears, the minimum rate of interest to be charged is _____________.
a) 5% p.a.
b) 6% p.a.
c) 8% p.a.
d) none of these

Q.

Shares are allotted after the receipt of ____________

1. Call money

2. Allotment money

3. Application money

4. None of these

Q. When defaulter shareholders pay their default amount of allotment money, we debit account and credit account.

1. calls in advance
2. calls in arrears
3. bank
4. share allotment

Q. Debit balance in cash book means __________.

1. Overdraft as per pass book
2. Overdraft as per cash book
3. Credit balance as per pass book
4. Debit balance as per day book

Q.

In case of default in the payment of allotment money by the shareholder, the share allotment account is credited with which amount?

1. Total Allotment money

2. Default Amount

3. Actual receipt

4. None of these

Q. In case of default in payment by shareholders, then account needs to be debited for the default amount.

1. calls in advance
2. calls in arrears
3. bank
4. share allotment

Q.

In case of default in the payment of allotment money, the bank account is debited with which amount?

1. Actual receipt

2. None of these

3. Total Allotment money

4. Default amount

Q.

In case of default in payment by shareholders, then _________ account needs to be debited for the default amount?

1. Share Allotment

2. Bank A/c

3. Calls In Advance

4. Calls in Arrears

Q. Shares are allotted after the receipt of money.

1. application
2. allotment
3. first call
4. final call

Q.

Calls in arrears is like a ___________.

1. loan granted by the company to the shareholders

2. loan received by the company to the shareholders

3. Loan received by the company from the vendors
4. Loan granted by the company to the vendors

Q. Does partnership firm has a separate legal entity? Give reason in support of your answer.

Q. Provision is a charge against profit.

1. True
2. False

Q. X sent out certain goods to Y of Delhi. 1/10 of the goods were lost in transit. Invoice value of goods lost Rs 20, 000. Invoice value of goods sent out on consignment will be ________________.

1. Rs 1, 80, 000
2. Rs 2, 00, 000
3. Rs 1, 50, 000
4. Rs 2, 20, 000