Commerce Exam > Commerce Notes > Crash Course of Accountancy - Class 12 > Calls in Arrear
Calls in Arrear | Crash Course of Accountancy - Class 12 - Commerce PDF Download
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FAQs on Calls in Arrear - Crash Course of Accountancy - Class 12 - Commerce
| 1. What is the concept of calls in arrear commerce? |  |
Ans. Calls in arrear commerce refer to outstanding or unpaid calls on shares. When a company issues shares, it may require shareholders to make payments in installments known as calls. If a shareholder fails to pay a call on time, it becomes a call in arrear.
| 2. How does a company handle calls in arrear? | |
Ans. A company may take several steps to handle calls in arrear. It can send reminders and notices to shareholders who have unpaid calls. If the shareholder still doesn't make the payment, the company may take legal action, impose penalties, or even cancel the shares.
| 3. Can a shareholder be held liable for calls in arrear? | |
Ans. Yes, a shareholder can be held liable for calls in arrear. When a shareholder purchases shares, they agree to the terms and conditions set by the company, which includes making timely payments for calls. Failure to pay the calls in arrear may result in legal consequences and potential loss of shares.
| 4. What are the consequences of calls in arrear for shareholders? | |
Ans. The consequences of calls in arrear for shareholders can include penalties, legal action, and potential loss of shares. Additionally, the shareholder's reputation may be affected, and they may face difficulties in future investments or dealings with other companies.
| 5. How can shareholders avoid calls in arrear? | |
Ans. Shareholders can avoid calls in arrear by ensuring timely payment of calls on shares. It is important to stay updated with communication from the company and meet the payment deadlines. If there are any financial difficulties, shareholders should communicate with the company and explore possible solutions or payment plans.
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Dec 25, 2024 Last updated |
Document Description: Calls in Arrear for Commerce 2024 is part of Crash Course of Accountancy - Class 12 preparation.
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