Balance of interest on calls-in-arrear account is transferred to_____________ at the end of the year.

Share capital account

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Calls in advance account

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Securities premium account

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Profit & loss account

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Solution

The correct option is D Profit & loss account
Interest on call in arrears is that interest which is received by company for the non-payment of called up amount. This amount is shown in sahre capital acocunt, it is decuted from the subscribed share capital amount and at the en of year a net balance of subscibed share capital is shown.

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