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Home Questions AR2VG9HMKA
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

A company failed to receive ₹2,00,000 on First and final call. Interest on calls in arrears is charged according to 'Table F' at:

Options:

6% p.a

8% p.a

10% p.a

12% p.a

Correct Answer:

10% p.a

Explanation:

The correct answer is option 3- 10% p.a.

Interest on calls in arrears is charged according to 'Table F' at 10% p.a.

If the Articles of Association are silent regarding the rate of interest on calls in arrears, the provisions of the Companies Act, 2013 (in India) would apply. As per Companies Act, 2013, the maximum rate of interest on calls in advance is 12% p.a. As per Companies Act, 2013, the maximum rate of interest on calls in arrears is 10% p.a.

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