Journal Entries on Calls in Advance
1. When the company received Calls in Advance money:
Note:
The amount of Calls in Advance is shown on the Equity & Liabilities side of the Balance Sheet under “Current Liabilities” as “Calls in Advance A/c”.
2. When the call is made by the directors:
A.
B.
Calls in Advance: Accounting Entries with Examples on Issue of Shares
Calls in Advance is the amount of future calls which is received by the company in advance. Calls in Advance is just opposite to Calls in Arrear. It is a situation when the shareholders of a company pay the amount not yet called upon their shares. Section 50 of the Companies Act, 2013 says that the company can accept the amount of Calls in Advance only when it is authorised by its Articles of Association.
Table of Content
- Journal Entries on Calls in Advance
- Example of Calls in Advance
- Interest on Calls in Advance
- Journal Entries on Interest on Calls in Advance
- Example of Interest on Calls in Advance