Maharashtra State BoardHSC Commerce 12th Board Exam
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Select the Most Appropriate Answer from the Alternatives Given Below and Rewrite the Sentence : - Book Keeping and Accountancy

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MCQ

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
Interest on Calls-in-arrears is ______________for the company.

Options

  • income

  • expenditure

  • gain

  • loss

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Solution

Interest on Calls-in-arrears is income for the company.

Explanation: When the shareholders do not pay the called-up amount on the shares, it is known as calls-in-arrears. The shareholders are required to pay the interest on such calls-in-arrears till it remains unpaid. It is in the nature of income for a company and hence, it is credited. The rate of interest charged by a company on calls-in-arrears is 5 % p.a.

Concept: Calls in Advance and Arrears
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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 10 Company Accounts Part - 1 (Accounting for Shares)
Exercise | Q 11 | Page 351
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