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Journal Entries for Re-Issue of Shares

As per Table ...

Question

As per Table A, the amount of call on a share must not exceed _____________________.

A

5% of the nominal amount of share

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B

25% of the nominal amount of share

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C

25% of the called amount of share

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D

5% of the called amount of share

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Solution

The correct option is B 25% of the nominal amount of share
The call on shares should not exceed one-fourth(25%) of the nominal value of the share. It should be made only after one month has expired from the previous call date. Shareholders belonging to a single class should be asked to make payment on the uniform basis.

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Journal Entries for Re-Issue of Shares

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