Doubts

SOLUTION The amount credited to Forfeited Share Account.

SOLUTION It is voluntary return of shares by a shareholder for the purpose of cancellation.

SOLUTION If any shareholder fails to pay the amount due on allotment or on any call within the specified period, the Directors may cancel his shares. This is called Forfeiture…

SOLUTION A Company may issue fully paid shares for consideration other than cash, in the following circumstances: (1) Issue of Shares to Promoters; (2) Issue of Shares for Purchase of…

SOLUTION As per Table F of Schedule 1 of the Companies Act, 2013, Company may pay maximum l2% p.a. interest from the date of receipt of Calls in advance to…

SOLUTION As per Table F of Schedule I of the Companies Act, 2013, Company can charge interest @ 10% p.a. from the due date to the date of actual payment.

SOLUTION Calls in Advance A/c is shown separately in the Balance Sheet under the main head ‘Current Liabilities’ and Sub-head ‘Other Current Liabilities’.

SOLUTION Calls in advance refers to the amount which has not been called by company but has been paid by some shareholders in advance.

SOLUTION Amount of calls in arrear will be shown as a deduction from the subscribed but not fully paid capital on the equity and liabilities side of the Balance Sheet.