Match the following:
| LIST 1 | LIST 2 |
| A) Calls in arrears | I) 10% p.a. |
| B) Calls in advance | II) 12% p.a. |
| C) Interest on calls in arrears | III) Amount not received till due date |
| D) Interest on calls in advance | IV) Excess amount received before due date |
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- A-III, B-IV, C-I, D-II.
| LIST 1 | LIST 2 |
| A) Calls in arrears | III) Amount not received till due date |
| B) Calls in advance | IV) Excess amount received before due date |
| C) Interest on calls in arrears | I) 10% p.a. |
| D) Interest on calls in advance | II) 12% p.a. |
* Calls in arrears- 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 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”.
* Interest on calls in arrears- As per Companies Act, 2013, the maximum rate of interest on calls in arrears is 10% p.a
* Interest on calls in advance- As per Companies Act, 2013, the maximum rate of interest on calls in advance is 12% p.a.