Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
What is the maximum amount a company can call on shareholders on any call?
Options:
5% of face value of shares
10% of face value of shares
15% of face value of shares
25% of face value of shares
Correct Answer:
25% of face value of shares
Explanation:
Two points are important regarding the calls on shares. First, the amount on any call should not exceed 25% of the face value of shares. Second, there must be an interval of at least one month between the making of two calls unless otherwise provided by the articles of association of the company.