31. What do you mean by Calls in Arrears and state the journal entry?

Sometimes shareholders may fail to pay the amount due on calls.The total amount not received on the calls by the company are called as Calls-in-Arrears. This amount is shown as a deduction from the called up capital to arrive the paid up share capital in the Balance Sheet. The accounting entry passed to record the same is:
               Calls in Arrears A/c Dr
                         To Share Call A/c
 (Call money on ................ shares @ Rs...... not received).

32. What do you mean by Calls in Advance and state the journal entry?
When an applicant sends more money than what is called by the company, the excess money is called Calls-in-Advance. The accounting entry passed to record the same is:
                Bank A/c Dr
                         To Calls – in- Advance
 (Call amount for ....... shares @ Rs..... received in advance).

33. What do you mean by Issue of Shares at Premium?
When a company issues its shares at a price more than the face value, it is said to be issued at premium. Premium is the excess money collected over and above the face value of the share. When share of Rs.10 (face value) are issued at Rs.12, it is said to be issued at a premium of Rs.2.

34. What do you mean by Issue of Shares at Discount?
When a company issues its shares at a price less than the face value, it is said to be issued at discount. Discount is the difference between the face value and the issue price. For example a share of Rs.10 (face value) is issued at Rs 9, it is said that shares are issued at discount of Re.1.

35. What do you mean by Forfeiture of Shares?
Forfeiture of shares means to cancel the allotment to the defaulting shareholder. Once the shares are forfeited, these shares will not form part of the share capital and the shareholders will not be the members of the company.