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
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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
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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:(D)
Explanation: