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

Objective Type Question :
Answer in one Sentence only :

Define call-in-advance.

Open in App
Solution

Sometimes a shareholder might pay the amount due on future calls along with the allotment money. In other words, it represents the amount received from the shareholders in excess of the amount that is actually due from them. This amount is credited to a different account known as Calls in Advance Account. It is shown on the Liabilities side of the company’s Balance Sheet. A company can accept calls in advance only if there is a provision in its Articles of Association. According to Table A, the company is required to pay interest at the rate of 6% p.a. on the amount received as advance call money.

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