Question

Difference between calls in arrears and calls in advance

Answer 1

CALL IN ARRERS REFERS TO THE CALLS WHICH ARE CALLED BY THE COMPANY FROM ITS SHAREHOLDERS BUT THEY DON'T PAY STILL.... INTERST ON CALL IN ARRERS IS THE INCOME OF THE COMPANY...


CALL IN ADVANCE REFERS TO CLASS WHICH COMPANY DON'T CALLED FROM ITS SHAREHOLDERS BUT SHAREHOLDERS PAY THIS IN ADVANCE. INTEREST ON THIS CALLS IS THE EXPENSE FOR COMPANY.