CA Foundation Exam > CA Foundation Questions > The rate of interest paid on calls in advance...
Start Learning for Free
The rate of interest paid on calls in advance as per table A is :
- a)5% p.a.
- b)12% p.a.
- c)10% p.a.
- d)4% p.a.
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
The rate of interest paid on calls in advance as per table A is :a)5% ...
Table A of the companies act provides for the payment of Interest on calls in advance @ 12%.
Most Upvoted Answer
The rate of interest paid on calls in advance as per table A is :a)5% ...
Interest Rate on Calls in Advance as per Table A
Explanation:
Table A in relation to calls in advance provides the rate of interest payable by the company on the amount of calls paid in advance. As per the Companies Act, 2013, a company can issue shares on a partly paid basis, where the shareholders are required to pay only a part of the face value of shares. The balance amount is payable by the shareholders on call made by the company.
The rate of interest payable on such calls in advance is determined as per Table A. The applicable rate of interest depends on the period for which the calls in advance are outstanding. The rates are as follows:
- For a period of up to one year: 12% p.a.
- For a period of more than one year but not exceeding three years: 15% p.a.
- For a period of more than three years: 18% p.a.
Therefore, the correct answer to the given question is option 'B', i.e., 12% p.a. This rate is applicable for calls in advance outstanding for up to one year.
Key Points:
- Table A provides the rate of interest payable by the company on calls in advance.
- The rate of interest depends on the period for which the calls in advance are outstanding.
- For a period of up to one year, the rate of interest is 12% p.a.
- The Companies Act, 2013 governs the issuance of shares on a partly paid basis.
Explanation:
Table A in relation to calls in advance provides the rate of interest payable by the company on the amount of calls paid in advance. As per the Companies Act, 2013, a company can issue shares on a partly paid basis, where the shareholders are required to pay only a part of the face value of shares. The balance amount is payable by the shareholders on call made by the company.
The rate of interest payable on such calls in advance is determined as per Table A. The applicable rate of interest depends on the period for which the calls in advance are outstanding. The rates are as follows:
- For a period of up to one year: 12% p.a.
- For a period of more than one year but not exceeding three years: 15% p.a.
- For a period of more than three years: 18% p.a.
Therefore, the correct answer to the given question is option 'B', i.e., 12% p.a. This rate is applicable for calls in advance outstanding for up to one year.
Key Points:
- Table A provides the rate of interest payable by the company on calls in advance.
- The rate of interest depends on the period for which the calls in advance are outstanding.
- For a period of up to one year, the rate of interest is 12% p.a.
- The Companies Act, 2013 governs the issuance of shares on a partly paid basis.
Free Test
FREE
| Start Free Test |
Community Answer
The rate of interest paid on calls in advance as per table A is :a)5% ...
The rate is fixed by the company
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
The rate of interest paid on calls in advance as per table A is :a)5% p.a.b)12% p.a.c)10% p.a.d)4% p.a.Correct answer is option 'B'. Can you explain this answer?
Question Description
The rate of interest paid on calls in advance as per table A is :a)5% p.a.b)12% p.a.c)10% p.a.d)4% p.a.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The rate of interest paid on calls in advance as per table A is :a)5% p.a.b)12% p.a.c)10% p.a.d)4% p.a.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The rate of interest paid on calls in advance as per table A is :a)5% p.a.b)12% p.a.c)10% p.a.d)4% p.a.Correct answer is option 'B'. Can you explain this answer?.
The rate of interest paid on calls in advance as per table A is :a)5% p.a.b)12% p.a.c)10% p.a.d)4% p.a.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The rate of interest paid on calls in advance as per table A is :a)5% p.a.b)12% p.a.c)10% p.a.d)4% p.a.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The rate of interest paid on calls in advance as per table A is :a)5% p.a.b)12% p.a.c)10% p.a.d)4% p.a.Correct answer is option 'B'. Can you explain this answer?.
Solutions for The rate of interest paid on calls in advance as per table A is :a)5% p.a.b)12% p.a.c)10% p.a.d)4% p.a.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The rate of interest paid on calls in advance as per table A is :a)5% p.a.b)12% p.a.c)10% p.a.d)4% p.a.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The rate of interest paid on calls in advance as per table A is :a)5% p.a.b)12% p.a.c)10% p.a.d)4% p.a.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for The rate of interest paid on calls in advance as per table A is :a)5% p.a.b)12% p.a.c)10% p.a.d)4% p.a.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of The rate of interest paid on calls in advance as per table A is :a)5% p.a.b)12% p.a.c)10% p.a.d)4% p.a.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The rate of interest paid on calls in advance as per table A is :a)5% p.a.b)12% p.a.c)10% p.a.d)4% p.a.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup