Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Financial Statements of a Company

Question:

What does "calls unpaid (aggregate)" refer to in the context of share capital disclosure?

Options:

The total amount paid by shareholders for their shares

The total number of shares that are cancelled by shareholders

The total amount that shareholders owe on their subscribed shares

The total number of shares that have been forfeited

Correct Answer:

The total amount that shareholders owe on their subscribed shares

Explanation:

The correct answer is option 3- The total amount that shareholders owe on their subscribed shares.

"Calls unpaid (aggregate)" refers to the total number of shares that have been issued by the company but remain unpaid by shareholders. In some cases, when a company issues shares, it may not require shareholders to pay the full value of the shares upfront. Instead, the company may make a "call" for the unpaid portion of the shares at a later date, requiring shareholders to pay the remaining amount.
For example, if a company issues 1,000 shares to a shareholder for ₹10 each but only receives payment for ₹8,000 initially, the remaining ₹2,000 that are yet to be paid by the shareholder are referred to as "calls unpaid." This means the shareholder still owes the company the amount equivalent to the value of those 200 unpaid shares.

The information of shareholders funds are presented on the face of financial statements limited only to broad and significant items. Details are given in Notes to Accounts. Aggregate of calls unpaid is shown in notes to account.