Question

What are the closing entries for interest on calls in arrears account and interest
on calls in advance account?

Answer 1

In this case, the amount which company has not received from the defaulter is debited to 'Calls in arrears Account'. Thus, Share Allotment Account, Share Calls Account will close. Total of calls in arrears is deducted from called up capital in balance sheet to find out paid up capital.

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Answer 2

Your answer is in the above attachment