allery'Calls in arrears' refers to
ACalls made by directors after share allotment
BCapital redeemed early
CExcess amount received from shareholders
DAmount due from shareholders but not yet paid
Answer & Solution
Correct answer: D. Amount due from shareholders but not yet paid
1. When the company makes a call and a shareholder fails to pay by due date, the unpaid amount is shown as Calls in Arrears.
2. It is deducted from Called-Up Capital in the Balance Sheet to arrive at Paid-Up Capital.
3. Interest may be charged on arrears as per Articles.
4. Hence (B) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 8 "Company Accounts - Issue of Shares", §8.3 ¶§8.3_
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