Question

Call in arrears appears in Company’s Balance sheet under:

a) Reserve and surplus b) Shareholder’s Funds

c) Contingent Liabilities d) Short term borrowings​

Answer 1

Call in arrears appears in Company’s Balance sheet under shareholder's fund.

Option (b) is correct.

Explanation:

• In a company's capital, the amount of calls in arrears is shown in the balance sheet.
• If the shares of the company are forfeited then the shares are deduced from it.
• In short, the call-in arrears share is represented as the deducted amount on the balance sheet.