Comprehension Passage
Unique Pictures Limited was registered with an authorised capital of Rs. 5,00,000, divided into 20,000, 5% preference shares of Rs. 10 each and 30,000 equity shares of Rs. 10 each. The company issued 10,000 preference and 15,000 equity shares for public subscription. Calls on shares were made as under:
Equity Shares | Rs.
- Application: 2
- Allotment: 3
- First Call: 2.50
- Second and Final Call: 2.50
Preference Shares | Rs.
- Application: 2
- Allotment: 3
- First Call: 2.50
- Second and Final Call: 2.50
All these shares were fully subscribed. All the dues were received except the second and final call on 100 equity shares and on 200 preference shares.
If the second and final call on 100 equity shares and 200 preference shares remains unpaid, which of the following would be the impact on the company’s financial statements?
1
The uncollected amount will be transferred to the bank account
2
The amount will be deducted from the share capital account
3
The amount will be shown as calls in arrears in the balance sheet
4
The amount will be written off as bad debts