Question

What should be deducted from subscribed share capital while preparing notes to account in the balance sheet.

Options

• Calls-in-arrears

• Calls-in-advance

• Share Forfeiture A/c

• Paid-up value of shares

Answer 1

Calls-in-arrears

Explanation:

Call in arrears occurs when a shareholder fails to pay the call amount due on the allotment or any subsequent calls. When adding notes to the account of share capital, calls in arrears are deducted from subscribed but not fully paid-up capital.