Calls in advance is shown as in the Company's Balance Sheet.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Current Liability
"Calls in advance" refers to amounts received from shareholders in excess of the calls made on their shares. This is a liability for the company. Calls in advance would be shown on the liabilities side of the balance sheet under current liabilities until the calls are actually made, and the liability is discharged.