BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Debit:Cash Account Credit:Share Call Account
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Debit:Cash Account Credit:Share Capital
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Debit:Share Capital Credit:Share Call Account
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Debit:Share Call Account Credit:Share Capital
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Detailed explanation-1: -When shares are issued the cash account will be debited with the amount received and the share capital account will be credited.
Detailed explanation-2: -Securities premium a/c Is credited with premium amount and Share capital a/c is also credited with the amount due on allotment less premium amount.
Detailed explanation-3: -Calls in Arrears. Calls in Advance. Meaning. Calls in arrears is the non-payment of the amount due on allotment/calls by one or more shareholders. Calls in advance is the prepayment of uncalled amount on the shares by one or more shareholders.
Detailed explanation-4: -A “capital call” or “draw down” transaction occurs in the context of private equity and venture capital investments. It is the legal term for the scenario where an investment firm asks for the capital already committed to it by an investor to provide the funds–usually when an investment deal is due to close.