Accountancy Part AAccounting for Shares

The balance in ‘Calls in Advance’ account is shown as a separate item…

The balance in ‘Calls in Advance’ account is shown as a separate item under the title Equity and Liabilities in the company's balance sheet, identify the same.

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Under the head ‘current liabilities’, as sub-head ‘others current liabilities’ and is not added to the amount of paid-up capital.

NCERT (2026-27 edition):
Calls in Advance – “… The balance in ‘Calls in Advance’ account is shown as a separate item under the title Equity and Liabilities in the company’s balance sheet under the head ‘current liabilities’, as sub-head ‘others current liabilities’. It is not added to the amount of paid-up capital.”