What Is Calls In Advance?


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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)

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