Match List-I with List-II.
| LIST I | LIST II |
| (A) For the amount of calls received in advance | (I) Calls in Advance A/c Dr. To Particular Call A/c |
| (B) Interest on Calls in Advance is due | (II) Sundry Shareholder's A/c Dr. To Bank A/c |
| (C) The amount of 'Calls in Advance' is adjusted | (III) Bank A/c Dr. To Calls in Advance A/c |
| (D) Interest on Calls in Advance, For Interest Paid | (IV) Interest on Calls in Advance A/c Dr. To Sundry Shareholder's A/c |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
Calls in advance is money received before a call is made. It is a liability of the company until the call falls due, and the company pays interest on it.
(A) For the amount of calls received in advance — this matches (III) Bank A/c Dr. To Calls in Advance A/c. Cash comes in, and the liability Calls in Advance is credited.
(B) Interest on Calls in Advance is due — this matches (IV) Interest on Calls in Advance A/c Dr. To Sundry Shareholder’s A/c. Interest is an expense of the company, and the amount is owed to the shareholders until it is paid.
(C) The amount of ‘Calls in Advance’ is adjusted — this matches (I) Calls in Advance A/c Dr. To Particular Call A/c. When the call is made, the advance is set off against the call money due, closing the liability.
(D) Interest on Calls in Advance, For Interest Paid — this matches (II) Sundry Shareholder’s A/c Dr. To Bank A/c. Paying the interest due clears the amount owed to the shareholders.
NCERT (2026-27 edition):
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