A company may accept calls in advance if provided in articles. When a shareholder pays in part or whole of the amount, not yet called upon his/her shares then amounts so received is called calls in advance.
Accounting of calls in advance: When the amount of calls-in-advance is received, it is credited to a newly opened account 'Calls-in -advance A/c'. The entry will be
bank A/c dr
to calls in advance a/c (with the amount of call received in advance)
Accounting of calls in advance: When the amount of calls-in-advance is received, it is credited to a newly opened account 'Calls-in -advance A/c'. The entry will be
bank A/c dr
to calls in advance a/c (with the amount of call received in advance)