Given information:
- Amount received in advance for second and final call = Rs 50,000
- Period for which amount was received in advance = 2 months
Finding the maximum rate:
According to Table F of the Companies Act, 2013, interest on calls in advance should not exceed 12% per annum.
Calculating Interest on Calls in Advance:
Using the simple interest formula:
Interest = 100Principal×Rate×Time
Interest = 100×1250,000×12×2
Interest = 1,20050,000×12×2
Interest = Rs 1,000
The time is taken as 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