Question

Director of NSZ Ltd. made a final call of Rs. 50 per share on 1st August, 2015 indicating the last date of payment of call to be 31st August, 2015. Mr. Black holding 8,000 shares paid the call money on 15 June, 2015 along with first call-in-advance. The company has a policy of paying interest on calls-in-advance as per Table F of Schedule I to the Companies Act, 2013. Interest on calls-in-advance will be ______.

• A. Rs. 6,000
• B. Rs. 8,333.33
• C. Rs. 5,000
• D. Rs. 10,000

Answer 1

The correct option is D Rs. 10,000

Here, amount paid by Mr. Black on final call is Rs 50*8,000 i.e. Rs 4,00,000. As per Table F of Schedule I to the Companies Act, 2013, if rate of interest on calls in advance in not mentioned in the AOA of the company, then it shall be levied at 12% p.a. So, interest on final call paid by Black will be 12% of Rs 4,00,000 i.e Rs 48,000. Mr Black paid the shares 2.5 months before the last date of payment. So, the interest paid will be (Rs 48,000/12)*2.5 i.e. Rs 10,000.