Question

As per Schedule III, Part I of the Companies Act, 2013 'calls-in-arrears' will be presented under which of the following head/sub-head, in the Balance Sheet of a company?

Options

• Reserves and Surplus

• Current Liabilities

• Contingent Liabilities

• Shareholders' Funds

Answer 1

Shareholders' Funds

Explanation:

'Calls-in-Arrears' refers to the sum that defaulting stockholders do not pay. This indicates a negative balance. It shows a negative balance. It is recorded as a deduction from called up capital under Shareholders' Fund.