Calls-In-Advance

1. When excess application money is retained (oversubscription):

Shares Application A/c                 ...Dr.

       To Calls-in-Advance A/c

(Being excess application money transferred to Calls-in-Advance A/c)

2. When shareholders pay the call amount in advance:

Bank A/c                   ...Dr.

       To Calls-in-Advance A/c

(Being the call amount received in advance)

3. When the call becomes due (call made by the company):

Shares First Call A/c (or relevant Call A/c)   ...Dr. 

        To Share Capital A/c

(Being call money due on shares)

4. Adjustment of Calls‑in‑Advance when the call becomes due:

Calls‑in‑Advance A/c      ...Dr.

          To Shares First Call A/c

(Being calls‑in‑advance adjusted against call due)

5. Receipt of balance call money (if any):

Bank A/c              ...Dr.

          To Shares First Call A/c

(Being balance call money received)

• Calls-in-advance means the amount of share capital or premium received before it is called by the company.
• It arises when excess application money is adjusted against future calls or when shareholders pay calls in advance.
• The amount received is credited to the Calls-in-Advance Account and adjusted when the call becomes due.
• Calls-in-advance are shown as Other Current Liabilities under Current Liabilities in the Balance Sheet.
• As per Section 50 of the Companies Act, 2013, calls-in-advance can be accepted only if permitted by the Articles of Association.