Question

Q. 6. Amount of Calls in Advance is
(A) Added to Share Capital
(B) Deducted from Share Capital
(C) Shown on the Assets side
(D) Shown on the Equity & Liabilities side
help please ​

Answer 1

Answer:

As calls in advance is (D) shown on the Equity & Liabilities side.

Explanation:

What is calls in advance?

When company is collecting share capital on various calls, if a shareholder pays a call money before even called up then it is called calls in advance.

So, you can see its not a part of share capital as company yet not called up for that money. Hence it is a liability for the company.

Thats why it is shown in the sub head of current Liabilities and under the main head of Equity & Liabilities.

I hope it helps :)

Answer 2

Answer:(D)

Explanation: