— Kishore V, SME and ACW at Edumarz
- The term “calls in advance” refers to when the money received by the firm exceeds the amount called up.
- They are listed individually as the company’s obligation on the Balance Sheet.
- The corporation keeps this cash to ensure that the shares are completely paid.
- The calls in advance are closed after this money has been deposited to the appropriate accounts.
Until the calls are made and the amount becomes payable by the shareholder, it is recorded under the heading ‘Current Liabilities‘.