Table F is a model set of Articles of Association provided under the Companies Act, 2013 (previously under Companies Act, 1956).
When a shareholder fails to pay call money on the due date, the unpaid amount is called Calls in Arrears. The company has the right to charge interest on this unpaid amount.
According to Table F, the rate of interest charged on calls in arrears is 10% per annum.
This interest is calculated from the date the call became due until the actual date of payment. It serves as a penalty for delayed payment and compensates the company for the time value of money.
The amount received as interest on calls in arrears is credited to the Profit and Loss Account (treated as income for the company).
Correct Answer: Option 1 (10%)