What will be the journal entries when a call is due and the amount of the same is received?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Share Call A/c Dr. To Share Capital A/c (call due); Bank A/c Dr. To Share Call A/c (call received)
A call is recorded in two steps. When the call is made, the amount becomes due from shareholders and forms part of share capital, so Share Call Account is debited and Share Capital Account credited. When the money is received, Bank is debited and the Share Call Account is credited, which closes the amount due.
Why the other options are incorrect
Option (1) Share Call A/c Dr. To Share Call A/c; Bank A/c Dr. To Share Capital A/c — Incorrect. Debiting and crediting the same account records nothing, and the receipt should close Share Call, not credit Share Capital a second time.
Option (3) Bank A/c Dr. To Share Capital A/c; Share Call A/c Dr. To Share Call A/c — Incorrect. No cash comes in when a call is only made, and the second entry again uses one account on both sides.
Option (4) Share Capital A/c Dr. To Share Call A/c; Bank A/c Dr. To Share Call A/c — Incorrect. Share Capital is credited, not debited, when a call is made, and the narrations are placed against the wrong entries.
NCERT (2026-27 edition):
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