Accountancy Part AAccounting for Shares

In the absence of Articles of Association, rate of Interest on calls…

In the absence of Articles of Association, rate of Interest on calls in Arrear will be charged at what rate of Interest?

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → @10% p.a.

NCERT (2026-27 edition):
Calls in Arrears – “… The Articles of Association of a company may empower the directors to charge interest at a stipulated rate on calls in arrears. If the articles are silent in this regard, the rule contained in Table F shall be applicable which states that the interest at a rate not exceeding 10% p.a. shall have to be paid on all unpaid amounts on shares for the period intervening between the day fixed for payment and the time of actual payment thereof.”