When a shareholder fails to pay a call amount on the due date, it becomes calls in arrears. The company can charge interest on such unpaid amounts.
According to Table F of the Companies Act (which provides model articles of association), the interest rate charged on calls in arrears is 10% per annum.
In this case, the company failed to receive Rs 2,00,000 on First and Final Call. As per Table F provisions, interest will be charged at 10% p.a. on this unpaid amount from the due date until actual payment is received.
The journal entry for recording such interest would be:
Calls in Arrears Interest A/c Dr.
To Interest on Calls in Arrears A/c
The interest amount would be calculated as: Rs 2,00,000 × 10% × (Period in months/12)
Correct Option: 3 (10% p.a.)