Question

X Ltd. made a final call on equity shares @ Rs. 20 each. Face value of shares is Rs. 100. One shareholder holding 500 shares had paid the final call before 4 months it had become due. The company had adopted Table F of Schedule I to the Companies Act, 2013, the amount of interest on Calls-in-Advance will be ____.

• A. Rs. 333.33
• B. Rs. 400
• C. Rs. 2,000
• D. Rs. 600

Answer 1

The correct option is B Rs. 400

Sometimes a shareholder pays a portion or whole on the unpaid amount on the shares held by him in advance. In such a case, money so received in advance is transferred to Calls-in- advance account. Here 500 shares were paid at Rs 20 which means Rs 10000 was paid in advance. As per Companies act if articles don't mention about calls in advance then rate of interest will be 12% p.a. Therefore, 12% of 10,000 is Rs 1200 and for it was paid before 4 months so the interest will Rs (1200/12) *4 i.e. Rs 400.