When shareholders pay less than called or pay before being called — interest treatment and entries (Table F default rates).
What are Calls in Arrears?
When a shareholder fails to pay the call money on or before the due date, the unpaid amount is called Calls in Arrears. It is shown as a deduction from Called-up Capital in the Balance Sheet.
Interest: As per Table F (Schedule I, Companies Act 2013) — chargeable @ 10% p.a. from due date till date of payment.
4.2
What are Calls in Advance?
When a shareholder pays an amount in excess of what has been called, the excess is treated as Calls in Advance. It is a liability shown under Other Current Liabilities until the call is made.
Interest: As per Table F — payable @ 12% p.a. from date of receipt till date the call falls due.
No voting rights and no dividend on Calls in Advance.
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