Accountancy Part AAccounting for Shares

Sometimes shareholders pay a part or the whole of the amount of calls…

Sometimes shareholders pay a part or the whole of the amount of calls not yet made. The amount so received from shareholders is:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Credited to calls in Advance Account

NCERT (2026-27 edition):
Calls in Advance – “Sometimes shareholders pay a part or the whole of the amount of the calls not yet made. The amount so received from the shareholders is known as “Calls in Advance”. The amount received in advance is a liability of the company and should be credited to ‘Call in Advance Account.”

NCERT (2026-27 edition):
Test your Understanding – II

Extract from the NCERT textbook

NCERT (2026-27 edition):
Answers to Test your Understanding

Extract from the NCERT textbook