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    Calls in Arrers ND Calls in Advance

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    kalyanikamineni
    The document discusses calls-in-arrears and calls-in-advance related to share capital payments. Calls-in-arrears occur when shareholders fail to pay amounts due on share allotments or calls, resulting in unpaid capital shown as a deduction from called-up capital. Calls-in-advance occur when shareholders pay amounts not yet called, which are credited to a calls-in-advance account until the call becomes due. The document provides journal entries examples to record these transactions.

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    Calls in Arrers ND Calls in Advance

    Uploaded by

    kalyanikamineni
    38 views3 pages
    The document discusses calls-in-arrears and calls-in-advance related to share capital payments. Calls-in-arrears occur when shareholders fail to pay amounts due on share allotments or calls, resulting in unpaid capital shown as a deduction from called-up capital. Calls-in-advance occur when shareholders pay amounts not yet called, which are credited to a calls-in-advance account until the call becomes due. The document provides journal entries examples to record these transactions.

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    The document discusses calls-in-arrears and calls-in-advance related to share capital payments. Calls-in-arrears occur when shareholders fail to pay amounts due on share allotments or calls, resulting in unpaid capital shown as a deduction from called-up capital. Calls-in-advance occur when shareholders pay amounts not yet called, which are credited to a calls-in-advance account until the call becomes due. The document provides journal entries examples to record these transactions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    38 views3 pages

    Calls in Arrers ND Calls in Advance

    Uploaded by

    kalyanikamineni
    The document discusses calls-in-arrears and calls-in-advance related to share capital payments. Calls-in-arrears occur when shareholders fail to pay amounts due on share allotments or calls, resulting in unpaid capital shown as a deduction from called-up capital. Calls-in-advance occur when shareholders pay amounts not yet called, which are credited to a calls-in-advance account until the call becomes due. The document provides journal entries examples to record these transactions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    Issue of Shares

    Calls-In-Arrears and Calls-In-Advance

    At the time of receiving the value of


    shares in instalments (calls)

    Share calls Calls-in-arrears Calls-in-advance i.e.


    money i.e., money money of future
    received in received is less instalments received
    full than due before hand

    “Bank A/c” is “Calls-in-arrears “Calls-in-advance A/c”


    debited with A/c” is debited is credited along
    full money along with the with entry for
    received entry for Bank “Bank A/c”
    A/c

    Calls-in-Arrears

    Sometimes shareholders fail to pay the amount due on allotment or calls.


    The total unpaid amount on one or more instalments is known as Calls-in-
    Arrears or Unpaid Calls. As it represents the uncollected amount of capital
    from the shareholders, it is shown by way of deduction from ‘called-up
    capital’ to arrive at paid-up value of the share capital.
    The following journal entry is recorded:

    Calls-in-Arrears A/c Dr. [Amount of Unpaid Calls]


    Bank A/c Dr. [Amount received]
    To Share Allotment A/c [Total allotment money due]
    To Share Calls A/c [Total Call money due]

    (Being call money/ allotment money received on .... shares at ₹per share.)

    Calls-in-Advance
    Some shareholders may sometimes pay a part, or whole, of the amount not
    yet called up, such amount is known as Calls-in-advance. According to Table
    F, interest at a rate not exceeding 12 per cent p.a. is to be paid on such
    advance call money. This amount is credited in Calls-in-Advance Account.

    The following entry is recorded:


    Bank A/c Dr.
    [Call amount received in advance]
    To Call-in-Advance A/c
    When calls become actually due, calls-in-advance account is adjusted at the
    time of the call. For this the following journal entry is recorded:

    Calls-in-Advance A/c Dr. [Call amount received in advance]


    Bank A/c Dr. [Remaining call money received, if
    any]
    To Particular Call A/c [Call money due]
    (Being call in advance adjusted and call money due received)

    Question 8:
    Shreyas Ltd. did not receive the first call on 10,000 equity shares @ ₹3
    per share which was due on 1.7.2016. This amount was received on
    1.4.2017.
    Open Calls in arrears account and journalize the entries in the books of
    the company on 1.7.2016 and 1.4.2017. Also show an extract of Balance
    Sheet on 31.3.2017.
    AUTHOR: CA ROCHELLE D’sa

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