A shareholder holding 600 shares paid the amount of the call @ ₹5 per share on Ist November 2021 whereas the call was due on Ist March 2022. What will be the Maximum interest on calls in advance that can be paid by the company?

₹120

The correct answer is option 3- ₹120.

The maximum interest on calls in advance that can be paid by the company is 12% p.a.
Shareholder paid = 600 X 5
                         = ₹3,000
Interest on calls in advance = 3000 X 12/100 X 4/12
                                        = ₹120