allery'Calls in advance' represents
ACapital not yet called (typical) (typical) (typical)
BAmount received from shareholders in excess of called-up amount
CBonus share liability (typical) (typical) (typical)
DPremium on issue (typical) (typical) (typical) (typical)
Answer & Solution
Correct answer: B. Amount received from shareholders in excess of called-up amount
1. When a shareholder pays an instalment ahead of the date called, the excess is shown as Calls in Advance.
2. It is a liability of the company shown separately from Share Capital.
3. Interest at 12% p.a. is payable on calls in advance unless Articles state otherwise.
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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