Which of the following will be credited for the excess amount received along with allotment money from the shareholders?
- ACalls in Arrears Account
- BCalls in Advance Account
- CShare Call Account
- DShare Capital Account
Solution & Step-by-step Explanation
When shareholders pay an amount along with the allotment money that is meant for future calls, the excess amount is treated as an advance liability for the company. This amount is credited to the "Calls in Advance Account" until the respective calls are formally made by the company.