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Question
‘Calls-in-Advance’ is shown in the company’s Balance Sheet under the head ______.
Options
Non-current Asset.
Current Liabilities.
Shareholders’ Funds.
Non-current Liabilities.
MCQ
Fill in the Blanks
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Solution
‘Calls-in-Advance’ is shown in the company’s Balance Sheet under the head Current Liabilities.
Explanation:
Calls-in-Advance represents money received from shareholders for future share calls before the company has actually made those calls. Since this money is collected in advance and the company has an obligation to either allot shares against it or return it within 12 months, it is a short-term liability. Under Schedule III of the Companies Act, 2013, it is presented under the major head Current Liabilities.
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