What is the call in arrears of a company?
Answer & explanation
Correct answer: option 2
It may happen that shareholders do not pay the call amount on due date. When
any shareholder fails to pay the amount due on allotment or on any of the calls,
such amount is known as ‘Calls in Arrears’/‘Unpaid Calls’. Calls in Arrears
represent the debit balance of all the calls account. Such amount shall appear
as ‘Note to Accounts.