In this article we will discuss about the accounting entries for call-in-arrears and calls-in-advance, explained with the help of an illustration. Calls-In-Arrears: If any amount, called in respect of a share, is not paid before or on the date fixed for payment thereof, such amount which is not paid, is called "CALLS-IN-ARREARS". Amount may be called up by the Company [...]
In this article we will discuss about the accounting treatment for the issue of shares at par, explained with the help of suitable illustrations. When a shareholder is required to pay an amount equal to the face value or nominal value of shares, then such issue of shares is at par. To have a complete accounting records for the sums [...]
In this article we will discuss about the accounting provisions relating to forfeiture of shares, explained with the help of suitable illustrations. When a shareholder fails to pay any call money which is due from him, the Company has two options: (i) To file a suit against the defaulting shareholder, or (ii) To forfeit his shares. Generally, a Company adopts [...]