GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Under the head ‘current assets’
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Under the head ‘current liabilities’
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By adding it to the share capital
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By deducting it from the called-up share capital
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Detailed explanation-1: -All the items relating to share capital are to be adjusted under the head share capital only. Unpaid calls are shown in balance sheet of the company by deducting the same from called up capital as it is not yet paid and is yet to be received.
Detailed explanation-2: -The unpaid amount for each share class must be shown on the statement of capital, which should be completed and submitted to Companies House each time there is an allotment of shares or upon incorporation or other changes to the value of a company’s issued share capital.
Detailed explanation-3: -If any shareholder does not pay the amount his call money to the company on his due date, this is called calls-in-arrears.
Detailed explanation-4: -Calls in arrears is shown in the liability side by deducting from the called up capital. If shares are forfeited, than it is deducted from share forfeited account.