Write the meaning of calls in arrears and calls in advance.
calls-in-arrear is the amount unpaid by the shareholder as per the call notice of company till the last date of payment . A shareholder may fail to pay the amount due either in allotment or in any calls. According to company act 2063, the company can change interest in calls in arrear for the period , the amount remain unpaid.
Calls-in-advance is the amount received by the company in advance before making call. It is the pre-received amount of company and treaded as liability. The company has to pay interest on calls in advance amount as per the provision made in article of association.