Calls in arrears treatment

Dear Mrs. Vidhya,

Calls in arrears appears in balance sheet when the amount on the shares are unpaid. Hence in previous years, that is the year in will the call was made for paying the uncalled amount on share there may be some shareholder who may have not paid the amount called hence at that time the entry would have been:-

Cash/ Bank     A/c Dr.

Calls in arrears A/c Dr.

              To Equity Share A/c

(Being amount received on call made)

The above entry may have passed in previous year when the call was made hence if in current year no amount is received there wont be any accounting entry it may be presented as it is in the bal.sheet in current year also.

Hence calls in arrears itself indicate that the corresponding amount on call made is yet to be received.

Regards,

Keval

Hai.........

Calls in arrear cannot be left not collected because company has to forfeit the share on which the call money is due after serving the notice the concerned share holder

thanks for ur reply mr.Keval & Mr.Dhanabal Ramasamy