Answer Posted / achala
to start any company,it must need the capital.for this
purpose company calls the public to give money to start the
business.persons who help the company by giving money to
them are called as share holders.in return to that money
company issues a share certificate to these share
holders.example:-"a" company wants to start the business.
it requires 10,000/- rs to start.it offer shares to the
public.i.e 1000 shares of rs 10 each.initially it may not
be wanting so much of money and agrees with the share
holders to pay in two calls.company make a call for the
first time.all the share holders pay to the company rs 5
for every share -5*1000=5000.after two monts it again makes
a call.but share holders will not make the payment.this due
amount is called calls in arrears.
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