What journal entry is made when the call amount is received from shareholders?
Answer & explanation
Correct answer: option 3
The correct answer is option 3-
Bank A/c Dr.
To Share Call A/c
When the call amount is received from shareholders, the correct accounting entry is:
Bank A/c Dr.
To Share Call A/c.
This accounting entry reflects the financial transaction where the company receives the call amount from shareholders and records it in the accounting system. The funds are deposited into the company's bank account, increasing the cash balance, and the Share Call Account is credited to show that the shareholders' obligation to pay the call has been met.