Cronic Limited issued 10,000 equity shares of Rs. 10 each payable as Rs. 2.50 on application, Rs. 3 on allotment, Rs. 2 on first call, and the balance of Rs. 2.50 on second and final call. All the shares were fully subscribed and paid except by a shareholder having 100 shares who could not pay for second and final call. Call in Arrears A/c will be debited with-

Rs. 250

The correct answer is Option (4) → Rs. 250

The Calls in Arrears Account is debited with the amount of money that was duly called up by the company but remains unpaid by the shareholder.

1. Shares Defaulted: 100 shares

2. Amount Unpaid per Share: The shareholder failed to pay only the Second and Final Call, which was $\text{Rs }2.50$.

3. Calls in Arrears Amount:

   $$\text{Calls in Arrears}=\text{Shares Defaulted}\times \text{Amount Unpaid on Call}$$
                          = 100 shares×Rs 2.50/share  

                                  = Rs 250