Question

Unpaid calls are shown in the balance sheet of a company _______________.

• A. By adding it to the share capital.
• B. By deducting it from the called-up share capital.
• C. Under the head, 'current assets'.
• D. Under the head, 'current liabilities'.

Answer 1

The correct option is B By deducting it from the called-up share capital.

All the items relating to share capital are to be adjusted under the head share capital only. Unpaid calls are shown in balance sheet of the company by deducting the same from called up capital as it is not yet paid and is yet to be received.