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    Question

    In the context of a company, calls-in-arrears is

    shown:
    A On the asset side of the Balance Sheet. Correct Answer Incorrect Answer
    B As a deduction from called-up capital on the liabilities side. Correct Answer Incorrect Answer
    C As a footnote to the Balance Sheet. Correct Answer Incorrect Answer
    D In the Profit & Loss Account as income. Correct Answer Incorrect Answer
    E As an addition to Reserves and Surplus. Correct Answer Incorrect Answer

    Solution

    Calls-in-arrears represents the amount not paid by shareholders; hence, it is subtracted from the called-up share capital to show the actual paid-up capital.

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