A company maintains 'Calls in Arrears' Account. What entry it will be passed on receiving first call money provided whole amount due in it is not received:- Option 1: Bank A/c Dr. Calls in Arrears A/c Dr. To Share First Call A/c Option 2: Bank A/c Dr. To Calls in Arrears A/c Option 3: Calls in Arrears A/c Dr. To Share First Call A/c Option 4: Share First Call A/c Dr. To Calls in Arrears A/c

Answer: Bank A/c Dr. Calls in Arrears A/c Dr. To Share First Call A/c. Solution: The correct option is: Bank A/c Dr. Calls in Arrears A/c Dr. To Share First Call A/c --- Accounting Logic Breakdown: When a company calls for the first call money, but some shareholders fail to pay their dues while others pay successfully, the company records the partial receipt using the following combined journal entry: * Bank A/c is Debited with the actual amount of money received in the bank. * Calls in Arrears A/c is Debited with the amount that was due but not received (unpaid amount). This account acts as a temporary asset/debtor account representing money yet to be collected. * Share First Call A/c is Credited with the total gross amount that was originally called up, completely closing out the temporary call account for this round. The Exact Entry Structure: Bank A/c Dr. [Amount Actually Received] Calls in Arrears A/c Dr. [Amount Unpaid] To Share First Call A/c [Total Amount Due]

Company Accounts

Share Capital

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A company maintains 'Calls in Arrears' Account. What entry it will be passed on receiving first call money provided whole amount due in it is not received:-

Bank A/c Dr.

Calls in Arrears A/c Dr.

To Share First Call A/c

Bank A/c Dr.

To Calls in Arrears A/c

Calls in Arrears A/c Dr.

To Share First Call A/c

Share First Call A/c Dr.

To Calls in Arrears A/c

✅ Correct Option: 1

The correct option is:

**Bank A/c Dr.

Calls in Arrears A/c Dr.

To Share First Call A/c**

Accounting Logic Breakdown:

When a company calls for the first call money, but some shareholders fail to pay their dues while others pay successfully, the company records the partial receipt using the following combined journal entry:

Bank A/c is Debited with the actual amount of money received in the bank.
Calls in Arrears A/c is Debited with the amount that was due but not received (unpaid amount). This account acts as a temporary asset/debtor account representing money yet to be collected.
Share First Call A/c is Credited with the total gross amount that was originally called up, completely closing out the temporary call account for this round.

The Exact Entry Structure:

$\text{Bank A/c \quad Dr. \quad [Amount Actually Received]}$

$\text{Calls in Arrears A/c \quad Dr. \quad [Amount Unpaid]}$

$\text{\quad To Share First Call A/c \quad \quad [Total Amount Due]}$

2026: 19 May Shift 1

The price payable by the employee for exercising the option granted in pursuance of the Employees Stock Option Plan is .

2023: 29 May Shift 2

When a company issues shares in open market and the amount is payable in instalments. What is the sequence of amount demanded by the company?

A. Money received on calls

B. Money due on calls

C. Allotment money received

D. Application money transferred to Share Capital A/c

E. Allotment money due.

Choose the correct answer from the options given below:

2022: 23 Aug Shift 2

Securities Premium Reserve as per section 52(2) of the companies Act 2013 can be used :

(A) To write-off preliminary expenses of the company

(B) To issue fully paid bonus shares to the extent not exceeding unissued share capital of the company

(D) To write off discount allowed on the goods sold on credit

Choose the correct answer from the options given below :

2025: 15 May Shift 1

What is the amount of excess application money credited to share allotment and money refunded on rejected application in totality?

2025: 4 June Shift 2

Which of the following is incorrect about the minimum subscription:

Minimum subscription is the minimum amount that, in the opinion of directors, must be raised to meet the needs of business operations of the company relating to:

2026: 23 May Shift 2

Employees Stock Option Plan (ESOP) can be offered by a company to:

A company maintains 'Calls in Arrears' Account. What entry it will be passed on receiving first call money provided whole amount due in it is not received:-

Solution

Accounting Logic Breakdown:

The Exact Entry Structure:

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