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easyMCQCUET Accountancy 2025 22 May Shift 12026Accountancy
1 mark

Which of the following will be credited for the excess amount received along with allotment money from the shareholders?

  1. A
    Calls in Arrears Account
  2. B
    Calls in Advance Account
  3. C
    Share Call Account
  4. D
    Share 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.

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Which of the following will be credited for the excess amount received along with allotment money from the shareholders?
A
Calls in Arrears Account
B
Calls in Advance Account
C
Share Call Account
D
Share Capital Account

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