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Question
Calls in advance appear in a Company’s Balance Sheet under ______.
Options
Share Capital
Current Liability
Share Application money pending allotment
Reserve & Surplus
MCQ
Fill in the Blanks
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Solution
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.
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