Exe Ltd. has Rs. 10,000 debit balance in Calls-in-Arrears Account and also Rs. 10,000 credit balance in Calls-in-Advance Account. The Accountant did n

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Exe Ltd. has Rs. 10,000 debit balance in Calls-in-Arrears Account and also Rs. 10,000 credit balance in Calls-in-Advance Account. The Accountant did n

Exe Ltd. has Rs. 10,000 debit balance in Calls-in-Arrears Account and also Rs. 10,000 credit balance in Calls-in-Advance Account. The Accountant did not show both the accounts in Balance Sheet adjusting the two accounts against each other. Is the approach correct? Give your reasons.

Monjur Alahi

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2025-01-04 04:42

1 Answers

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Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

Salim Ahmed Kawsar

No, the approach is not correct because the two items are separate. Call-in-Arrears is shown by way of deduction from the Called-up Share Capital whereas Calls-in-Advance is shown as Current Liability.

5 views Answered 2023-02-05 15:29