Calls in advance is shown as in the Company's Balance Sheet.
(
This question was previously asked in
Shift 01/06/2023 8:30 AM - 11:30 AM
A
Non-Current Liability
B
Current Liability
C
Part of Share Capital
D
Current Assets
Correct Answer
Current Liability
Detailed Explanation
"Calls in advance" refers to amounts received from shareholders in excess of the calls made on their shares. This is a liability for the company because it represents an obligation to provide additional services or deliver further value to the shareholders.
The correct classification is:
(2) Current Liability
Calls in advance would be shown on the liabilities side of the balance sheet under current liabilities until the calls are actually made, and the liability is discharged.
Get Dubuddy App
Practice on the go with our mobile app
More CUET Questions
1
Select the command that allows to reverse an undo command.
(
2
A and B share profits and losses in the ratio of 2: 1. They admit C as partner with 1th share in 4
profits with a guarantee that his share of profit shall be at least 50,000. The net profit of the firm for the year ending March 31st, 2022 was 2,40,000, Determine C's share in profits.
(1) 50,000
(2) 60,000
(3) 40,000
(4) 30,000
3
The current ratio of a firm is 3: 1. Identify how the payment of current liability will affect it.
(1) Improve current ratio
(2) Reduce current ratio
(3) No change in current ratio
(4) Will effect the solvency ratio
4
Which one of the following is not the component of Computerized Accounting System ?
(
Test Series
CUET Subjects
Your CUET Journey Starts with DuBuddy
CUET ki Practice Means DuBuddy Pe Practice