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Question : A shareholder failed to pay share allotment money on 10,000 shares @ Rs. 30 per share. Which one of the following account will be taken into account?

Option 1: Debited to Share Capital A/c

Option 2: Debited to Calls-in Arrears A/c

Option 3: Credited to Calls-in in Arrears A/c

Option 4: Credited to Share Capital A/c


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

Correct Answer: Debited to Calls-in Arrears A/c


Solution : Answer = Debited to Calls-in Arrears A/c

When a shareholder fails to pay the share allotment money, it is recorded by debiting the Calls-in Arrears account. This account represents the amount of money that shareholders owe the company for their shares but have not yet paid.
Hence, the correct option is 2.

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