Question

Calls-in-Advance and interest payable thereon is shown in the Balance Sheet as ______.

Options

• Shareholders’ Funds.

• Other Non-current Liabilities.

• Other Current Liabilities.

• Trade Payables.

Answer 1

Calls-in-Advance and interest payable thereon is shown in the Balance Sheet as other current liabilities.

Explanation:

Calls-in-Advance is money paid by shareholders before the company calls for it. Since this money is an advance that cannot be treated as share capital yet, and any interest on it must be paid within 12 months, it is a liability. It is placed under Other Current Liabilities because it is a special financial obligation, not a bank loan or a trade debt.