Nepalese Company Act - Accounting Treatment and Presentation of Calls in Arrears

प्रा.लिको हकमा चुक्ता पुँजि बराबरको रकम कम्पनिको खातामा जम्मा गर्नै पर्ने कुनै कानुनी व्यवस्था छ ? यदि त्यस्तो व्यवस्था भएको खण्डमा सो बराबरको रकम जम्मा नभएको भएमा वित्तिय विवरण वा वसालतमा कसरी देखाउनु पर्छ ?

A recent circular issued by the Office of Company Register has made it mandatory to submit the original copy of the deposit voucher and bank statement or notarized copy of deposit voucher/bank statement for the share allotment by Company Registrar office. This provision has made all the transactions related to shares both sale and purchase to be done through banking channels only unlike past where companies were showing cash transactions. Please refer to image below for the notice.

However, as raised on the question above, it is possible that the company has not received all of the issued capital or called up capital within the time frame prescribed on the call made to its shareholders. The terminology for such shortfall is "Calls in Arrears".

For Instance: Let's say the company has called/issued 100 shares @ Rs. 100 each. Out of which, the company has received in Bank NRs. 5,000 for 50 shares @ Rs 50 each then, remaining will NRs. 5,000 will be call in arrears. Accounting treatment for the same would be:

Calls in Arrears A/C Dr. 5,000
Bank A/c Dr.                   5,000
To, Share Capital A/c    10,000

Same would be presented in the Liability Side of the Balance Sheet or the Share Capital Schedule of the financial statement, as follows:

Authorized Capital 
1000 shares @ NRs. 100 each                     Rs. 100,000.000
(assuming authorized at the time of registration of the company is 1000 shares @ NRs. 100 each)

Issued Capital
100 shares @ NRs. 100 each                        Rs. 10,000.00

Call in Arrears
50 Shares @ NRs. 100 each                          Rs. 5,000.00

Paid Up Capital
50 Shares @ NRs. 100 each                           Rs. 5,000.00

And, then, calls in arrears of Rs. 5,000 can be disclosed as part of the Notes to Accounts as follows:

The company has issued 100 shares @ NRs. 10 per share but only able to collect capital for 50 shares. The company has plans to collect remaining share amount in next Fiscal Year. It has been booked as Call in Arrears (NRs. 5,000.00) currently.