Company Accounts

Share Capital

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Table F of the Companies Act provides for the payment of interest on calls in advance at a rate not exceeding:

10% per annum.

12% per annum.

11% per annum.

15% per annum.

✅ Correct Option: 2

When shareholders pay share money in advance (before the company makes a call for it), the company may pay interest on such advance payments.

As per Table F of the Companies Act, 2013, the maximum rate at which interest can be paid on calls in advance is 12% per annum.

This interest is calculated from the date of receipt of the advance amount till the date when the call becomes due. The company has the discretion to pay interest at any rate up to this maximum limit, but it cannot exceed 12% per annum.

For example, if a shareholder pays ₹10,000 in advance for 6 months before the call is due, the maximum interest that can be paid = $\frac{10,000 \times 12 \times 6}{100 \times 12}$ = ₹600.

The correct answer is Option 2: 12% per annum.

2025: 3 June Shift 1

Identify which of the following will be shown in Notes to Accounts under SHARE CAPITAL head :-

2025: 15 May Shift 1

The important steps in the procedure of share issue are :

(A) The company issues the prospectus to the public.

(B) The company has to get minimum subscription within 120 days from the date of the issue of the prospectus.

(C) The prospective investors intending to subscribe the share capital of the company would make an application along with the application money.

(D) Letters of allotment are sent to those whom the shares have been alloted, and letters of regret to those to whom no allotment has been made.

Choose the correct sequence of steps from the options given below:

2022: 20 July Shift 1

If a share of Rs. 100 on which Rs. 45 has been paid is forfeited at what minimum price can it be reissued :

2025: 29 May Shift 2

In case of over subscription, the directors may

(A). Accept some applications in full and reject excessive applications.

(B). They can make pro-rata allotment to all.

(C). They can adopt a combination of the above two alternatives.

(D). They can make preferential allotment to some applicants.

2025: 15 May Shift 1

What amount will be credited to Equity Share Application Account on February 10, 2024?

2023: 28 May Shift 1

Find the correct sequence of procedure of issue of shares :

(A) Receipt of Applications

(B) Issue of prospectus

(D) Making call money due

(E) Receiving Call money

Choose the correct answer from the options given below :

Table F of the Companies Act provides for the payment of interest on calls in advance at a rate not exceeding:

Solution

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