Question

A shareholder holding 600 shares paid the amount of call @ ₹5 per share on 1st November 2022 whereas the call was due on 1st March 2023. Interest on calls in advance as per Table F will be ______.

Options

• ₹45

• ₹60

• ₹50

• ₹120

Answer 1

A shareholder holding 600 shares paid the amount of call @ ₹5 per share on 1st November 2022 whereas the call was due on 1st March 2023. Interest on calls in advance as per Table F will be ₹120.

Explanation:

Amount paid in advance
Total advance = 600 × 5 = ₹3,000

Period of advance
Paid on = 1st Nov 2022
Due on = 1st Mar 2023
Period = 4 months (Nov–Feb) = 4/12 year

Interest calculation (12% p.a.)
Interest = 3,000 × 12% × 4/12
= 3,000 × 0.12 × 0.333…
= ₹120