Question

Calls in advance appear in a Company’s Balance Sheet under ______.

पर्याय

• Share Capital

• Current Liability

• Share Application money pending allotment

• Reserve & Surplus

Answer 1

Calls in advance appear in a Company’s Balance Sheet under current liability.

Explanation:

Calls in Advance refer to the amount received by the company from shareholders before it is actually called (i.e., before the company demands it through a formal call on shares).

• Since this amount is not yet due, it does not form part of Share Capital.
• It is treated as a liability until the call becomes due, because the company owes this money until it’s adjusted.