Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

According to 'Table F', interest on calls-in-arrears is charged at:

Options:

11%

8%

6%

10%

Correct Answer:

10%

Explanation:

The correct answer is Option (4) → 10%

" The Articles of Association of a company may empower the directors to charge interest at a stipulated rate on calls in arrears. If the articles are silent in this regard, the rule contained in Table F shall be applicable which states that the interest at a rate not exceeding 10% p.a. shall have to be paid on all unpaid amounts on shares for the period intervening between the day fixed for payment and the time of actual payment thereof."