Money received in advance from shareholders before it is actually called-up by the directors is:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Credited to calls in advance account
Money received before a call is made is not yet due, so it cannot go to the call account. It is a liability of the company until the call is made, so it is credited to a separate Calls in Advance account, and transferred to the call account when the call falls due.
NCERT (2026-27 edition):
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