The amount received as calls-in-advance is a _____of the company.
A
Right
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Asset
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Debt
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
D
Revenue
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is C Debt Sometimes some shareholders pay a part or the whole of the amount of the calls not yet made. The amount so received from the shareholders is known as “Calls in Advance”. The amount received in advance is a liability of the company and should be credited to 'Call-in-Advance Account.”