Question

Give one word / Term / phrase for  the following statement :
Deduction made from share capital to find out paid up capital.

Answer 1

Calls-in-arrears

Explanation: Sometimes, a shareholder might not pay the call money on all the shares or on some of the shares held by him. In such cases, the unpaid amount is treated as call in arrears. According to Table A, the company is authorised to charge interest on call in arrears @ 5% p.a. till the amount remains unpaid. The amount of call in arrears is deducted from the called-up capital in the Balance Sheet to show the net paid-up capital by the shareholder.