Rs 50,000 were received in advance for second and final call along with first call. The second and final call was due after two months from the first…

Given information:

• Amount received in advance for second and final call = Rs 50,000
• Period for which amount was received in advance = 2 months

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Finding the maximum rate:

According to Table F of the Companies Act, 2013, interest on calls in advance should not exceed 12% per annum.

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Calculating Interest on Calls in Advance:

Using the simple interest formula:

Interest = $\frac{\text{Principal} \times \text{Rate} \times \text{Time}}{100}$100Principal×Rate×Time​

Interest = $\frac{50,000 \times 12 \times 2}{100 \times 12}$100×1250,000×12×2​

Interest = $\frac{50,000 \times 12 \times 2}{1,200}$1,20050,000×12×2​

Interest = Rs 1,000

The time is taken as $\frac{2}{12}$122​ years since interest rate is per annum and the advance was received for 2 months (from first call date until second call due date).

Answer: 12%, Rs 1,000