When shareholders make default in the payment of allotment money or call money due from them, it is termed as__________

Calls in Arrears

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Solution

The correct option is A
Calls in Arrears

When shareholders make default in the payment of allotment money or call money due from them, it is termed as calls in arrears

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Q. When shareholders make default in the payment of allotment money or call money due from them, it is termed as .

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Q. Zoya Ltd. issued 10,000 shares of ₹10 each payable as ₹3 on application, ₹2 on allotment, ₹3 on first call, and ₹2 on the second and final call. K, a shareholder of 100 shares paid only application and allotment money. Y, a shareholder of 250 shares did not pay second and final call money. Calculate the total amount of calls-in-arrear:

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[0.88 marks]

A Company issued 50,000 equity shares of Rs 10 each at par payable as under:

On Application Rs 2; on allotment Rs 1; on first call Rs 3 and on final call Rs 4 per share (four months after first call).

Amount due on application and allotment was duly received. One shareholder holding 1,000 shares could not pay the first call money in time. Another shareholder holding 2,000 shares paid the final call money along with the first call money.

Final call was made. All the shareholders paid in full. First call arrear on 1,000 shares were also received at the time of final call.

(a) Make entries in the Company's journal for transactions relating to first call and final call.

(b) Company also decided to provide free transportation facility to its employees. Identify the value involved in this decision.

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When shareholders make default in the payment of allotment money or call money due from them, it is termed as__________

The correct option is A Calls in Arrears When shareholders make default in the payment of allotment money or call money due from them, it is termed as calls in arrears

The correct option is A
Calls in Arrears

When shareholders make default in the payment of allotment money or call money due from them, it is termed as calls in arrears