Match List – I with List – II. List - I List - II (A) Application Mon… | Accountancy Part A CUET question

Match List – I with List – II.

List - I	List - II
(A) Application Money should be at least	(I) 25% of face value
(B) The interest rate on calls in Arrears	(II) 12% p.a.
(C) The interest rate on calls in Advance	(III) 10% p.a.
(D) The amount of calls should not exceed	(IV) 5% of face value

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A)-(IV), (B)-(III), (C)-(II), (D)-(I)

(A) Application Money should be at least — this matches (IV) 5% of face value. This is the minimum under the Companies Act, 2013.

(B) The interest rate on calls in Arrears — this matches (III) 10% p.a. When the articles are silent, Table F allows interest not exceeding 10% p.a.

(C) The interest rate on calls in Advance — this matches (II) 12% p.a. Table F allows interest not exceeding 12% p.a. on calls in advance.

(D) The amount of calls should not exceed — this matches (I) 25% of face value. A single call cannot be more than 25% of the face value of the share.

NCERT (2026-27 edition):
Accounting Treatment

Extract from the NCERT textbook

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.”

NCERT (2026-27 edition):
Calls in Advance – “… As ‘Calls in Advance’ is a liability of the company, it is under obligation, if provided by the Articles, to pay interest on such amount from the date of its receipt up to the date when appropriate call is due for payment. A stipulation is generally made in the Articles regarding the rate at which interest is payable. However, if Articles are silent on this account, Table F is applicable which provides for interest on calls in advance at a rate not exceeding 12% per annum.”