Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

How many days(minimum) are given to shareholders to pay the call amount on shares allotted to them?

Options:

10

12

14

15

Correct Answer:

14

Explanation:

Where there is no articles of association of its own, the following provisions of Table A will apply:
(a) A period of one month must elapse between two calls.
(b) The amount of call should not exceed 25% of the face value of the share.
(c) A minimum of 14 days notice is given to the shareholders to pay the amount.
(d) Calls must be made uniformly on all shares within the same class.