Question

Give any two differences between Calls in Arrears and Calls in Advance.

Hint:

Unpaid calls = Calls in Arrears; Advance payment by shareholders = Calls in Advance.

Answer 1

Calls in Arrears represent the amount unpaid by shareholders on calls due, whereas Calls in Advance represent the amount received by the company before calls are made.
Interest may be charged on Calls in Arrears, whereas interest may be allowed on Calls in Advance as per the Articles of Association.