Issue of Debentures> Calls-In-Arrears

A. By Opening the Calls-in-Arrears Account:

1. When the amount is not received (Calls-in-Arrears Account is opened):

Calls-in-Arrears A/c               ...Dr.

       To Debentures Allotment/Call A/c

(Being the amount not received, transferred to Calls-in-Arrears A/c)

2. When the amount is later received:

Bank A/c                           ...Dr.

        To Calls-in-Arrears A/c

(Being the amount received on Calls-in-Arrears)

B. For Calls-in-Arrears:

1. On non-receipt of the call amount on the due date:

Calls-in-Arrears A/c              ...Dr.

         To Relevant Call A/c (e.g., Debentures Allotment A/c)

(Being the amount not received on call, transferred to Calls-in-Arrears)

2. On receipt of Calls-in-Arrears at a later date:

Bank A/c                          ...Dr.

        To Calls-in-Arrears A/c

(Being the amount received on Calls-in-Arrears)

C. For Interest on Calls-in-Arrears:

1. On making interest due on Calls-in-Arrears:

Sundry Debentureholders’ A/c      ...Dr.

        To Interest on Calls-in-Arrears A/c

(Being the amount of interest due on Calls-in-Arrears)

2. On receipt of interest on Calls-in-Arrears:

Bank A/c                          ...Dr.

      To Sundry Debentureholders’ A/c

(Being the amount of interest received)

D. On transferring Interest on Calls-in-Arrears to Statement of Profit & Loss:

Interest on Calls-in-Arrears A/c     ...Dr.

        To Statement of Profit & Loss

(Being the interest transferred to Profit & Loss A/c)