Question
B Ltd. issued equity shares of Rs.10 each at 10%
premium; all shares were issued and subscribed. Amount called up: - On application Rs.3 each, on allotment Rs.2, Rs.3 on first call and Rs. 2 on final call. Mr. A, a holder of 200 shares paid entire money on allotment. At the time of receiving the money of “Calls in Advance” A/c will be credited with Rs. ________Solution
Calls in Advance refer to the amount paid by a shareholder for their shares before the company has officially made a formal call for that payment. Here, Mr. A has paid the entire amount at allotment. As such, he has paid The first call of Rs.3 and final call of Rs.2 in advacne. Total calls in advance money paid by Mr. A = No. of shares held by him x (First call + final call per share) = 200 shares * (3+2) = Rs.1000Â
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