Accountancy Part AAccounting for Shares

Interest on calls in Advance is allowed according to 'Table F" of Com…

R.Ltd invited applications for 15,000 shares of ₹10 each at premium of ₹2 per share. The amount was payable as follows:

On Application ₹4, On allotment ₹5

On Ist call ₹2, and on final call ₹1

Applications were received for 20,000 shares. Application of 2,000 shares were rejected. Mohan, who applied for 3,000 shares was allotted in full and prorata allotment was made to the remaining applicants. All money was fully received with the exception of first call and final call on 3,000 shares held by Hari. These shares were forfeited and subsequently re-issued @ ₹8 per share.

On the basis of the above information answer the question.

Interest on calls in Advance is allowed according to 'Table F" of Companies Act, 2013 at the rate of:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → 12% p.a.

NCERT (2026-27 edition):
Calls in Advance – “… As ‘Calls in Advance’ is a liability of the company, it is under obligation, if provided by the Articles, to pay interest on such amount from the date of its receipt up to the date when appropriate call is due for payment. A stipulation is generally made in the Articles regarding the rate at which interest is payable. However, if Articles are silent on this account, Table F is applicable which provides for interest on calls in advance at a rate not exceeding 12% per annum.”