Maharashtra State BoardHSC Commerce 12th Board Exam
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Answer in One Sentence Only : - Book Keeping and Accountancy

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One Line Answer

Answer in one Sentence only :
Define call-in-advance.

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Solution

Sometimes a shareholder might pay the amount due on future calls along with the allotment money. In other words, it represents the amount received from the shareholders in excess of the amount that is actually due from them. This amount is credited to a different account known as Calls in Advance Account. It is shown on the Liabilities side of the company’s Balance Sheet. A company can accept calls in advance only if there is a provision in its Articles of Association.  According to Table A, the company is required to pay interest at the rate of 6% p.a. on the amount received as advance call money.

Concept: Calls in Advance and Arrears
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Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 10 Company Accounts Part - 1 (Accounting for Shares)
Exercise | Q 13 | Page 350
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