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Answer Posted / vipin balakrishnan
calls in arrears arises when issued capital at a value 100
is offered to the shareholders and shareholders in return
pays only 75 that means its partly paid only. So this
difference (of 25) between issued capital and paid
upcapital is known as call in arrears. The company later on
will issue notice to the share holders who had only partly
paid to pay back the balance amount of the shares with
interest due thereon, other wise they will forfiet the
partly paid shares without refunding the amount partly
paid.
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