Calls in advance are treated in the balance sheet as?

Assessment: JAMB UTME - Principles of Accounts - 1999 Subject: Financial Accounting

Question 1 Report

Calls in advance are treated in the balance sheet as?
Answer Details
Calls in advance are treated in the balance sheet as a current liability. This is because a call in advance represents an amount paid by a shareholder in excess of the amount due on their shares. The company has an obligation to repay this amount to the shareholder, and since it is expected to be repaid within one year, it is classified as a current liability on the balance sheet.
Read lesson note on Nature And Significance Of Accounting (JAMB)
Read lesson note on Principles Of Double Entry (JAMB)
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