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Question
Calls in arrears appear in a Company’s balance sheet under ______.
Options
Reserve & Surplus
Shareholder’s Funds
Contingent Liabilities
Short-term Borrowings
MCQ
Fill in the Blanks
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Solution
Calls in arrears appear in a Company’s balance sheet under shareholder’s funds.
Explanation:
Calls in Arrears refer to the amount unpaid by shareholders on the shares they have subscribed, even after a call (demand for payment) has been made by the company. In the Balance Sheet of a company (as per Schedule III of the Companies Act, 2013), it is deducted from the Subscribed but Not Fully Paid-Up Share Capital, which is a part of Shareholder’s Funds.
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