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Question
Under which of the following headings/sub-headings, Calls-in-advance will be presented in the Balance Sheet of a Company as per Schedule III Part I of the Companies Act, 2013?
Options
Current Liabilities
Share Capital
Share Application Money Pending Allotment
Reserves and Surplus
MCQ
Solution
Current Liabilities
Explanation:
Calls in advance are amounts paid in excess by shareholders for calls that are not yet due. Calls in advance are shown separately in the Balance Sheet under the heading 'Current Liabilities' until the calls are made and the amount becomes payable by the shareholder.
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Accounting Treatment for Share Capital
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