Match List-I with List-II. LIST I LIST II (A) Calls in Arrears (I) Sh…

Match List-I with List-II.

LIST I	LIST II
(A) Calls in Arrears	(I) Shares are taken back by the company as shareholders failed to pay one or more installments, viz. allotment money and/or call money.
(B) Calls in Advance	(II) This is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription.
(C) Forfeiture of Shares	(III) This is the amount which any shareholder fails to pay on allotment or on any of the calls.
(D) Under Subscription	(IV) Table 'F' of the Companies Act provides for the payment of interest on this call at a rate not exceeding 12% per annum.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

These four terms describe what can happen to the money due on shares: paid late, paid early, not paid at all, or not applied for in full.

(A) Calls in Arrears — this matches (III) This is the amount which any shareholder fails to pay on allotment or on any of the calls. It is money called but not received.

(B) Calls in Advance — this matches (IV) Table ‘F’ of the Companies Act provides for the payment of interest on this call at a rate not exceeding 12% per annum. Money received before it is called is a liability, and the company pays interest on it up to 12%.

(C) Forfeiture of Shares — this matches (I) Shares are taken back by the company as shareholders failed to pay one or more installments, viz. allotment money and/or call money. The company cancels the allotment and keeps the money already received.

(D) Under Subscription — this matches (II) This is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription. The public applies for fewer shares than offered.

NCERT (2026-27 edition):
Calls in Arrears – “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’.”

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.” The amount received will be adjusted towards the payment of calls as and when they becomes due. Table F of the Companies Act provides for the payment of interest on calls in advance at a rate not exceeding 12% per annum.”

NCERT (2026-27 edition):
Forfeiture of Shares – “It may happen that some shareholders fail to pay one or more instalments, viz. allotment money and/or call money. In such circumstances, the company can forfeit their shares, i.e. cancel their allotment and treat the amount already received thereon as forfeited to the company within the framework of the provisions in its articles.”

NCERT (2026-27 edition):
Under Subscription – “Under subscription is a situation where number of shares applied for is less than the number for which applications have been invited for subscription.”