Rs 50,000 were received in advance for second and final call along with first call. The second and final call was due after two months from the first call. Table F provides for interest on calls in advance at the rate not exceeding ........ per annum and interest on calls in advance amounted to Rs.............
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 12%, Rs 1000
Table F of the Companies (Table F) Rules under the Companies Act 2013 allows the company to pay interest on calls in advance at a rate not exceeding 12% per annum.
Interest=Amount×Rate×Time
=
Interest=50,000× (12/100) x(2/12) = 1,000