wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Give one word / Term / phrase for each of the following statement :

Deduction made from share capital to find out paid up capital.

Open in App
Solution

Calls-in-arrears

Explanation: Sometimes, a shareholder might not pay the call money on all the shares or on some of the shares held by him. In such cases, the unpaid amount is treated as call in arrears. According to Table A, the company is authorised to charge interest on call in arrears @ 5% p.a. till the amount remains unpaid. The amount of call in arrears is deducted from the called-up capital in the Balance Sheet to show the net paid-up capital by the shareholder.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Undersubscription
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon