Question

If articles are silent regarding interest on calls-in-arrears, the minimum rate of interest which can be charged on calls-in-arrears is ____________.

• A. 6% p.m.
• B. 5% p.a.
• C. 6% p.a.
• D. None of these

Answer 1

The correct option is D None of these

In this article we will discuss about the accounting entries for call-in-arrears and if any amount, called in respect of a share, is not paid before or on the date.The company can charge interest on all such calls in arrears for the period the rate of 5% p.a. The total of Calls- in-Arrears is shown in the Balance Sheet.