On calls in advance, interest is payable at _________.
A
5%
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
6%
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
4%
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
0%
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is B 6% If the articles of the company is silent on this, an interest of 6% is payable on calls in advance. Interest amount is to be debited to the profit & loss account.
Even in case the company does not have the profits, interest is payable.