Accountancy Part AAccounting for Shares

The balance in 'Calls in Advance' account is shown as a separate item…

The balance in 'Calls in Advance' account is shown as a separate item under which heading of the balance sheet?

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Current Liabilities

NCERT (2026-27 edition):
Calls in Advance – “… The balance in ‘Calls in Advance’ account is shown as a separate item under the title Equity and Liabilities in the company’s balance sheet under the head ‘current liabilities’, as sub-head ‘others current liabilities’. It is not added to the amount of paid-up capital.”