Question

Amount of Calls in Advance is ______.

Options

• Added to Share Capital

• Deducted from Share Capital

• Shown on the Assets side

• Shown on the Equity & Liabilities side

Answer 1

Amount of Calls in Advance is Shown on the Equity & Liabilities side.

Explanation:

Calls in Advance = money received from shareholders before it is actually due. It is not a part of Share Capital, so it is not added to it. It is shown separately under Equity & Liabilities in the Balance Sheet (as a liability of the company towards shareholders).