Calls in Arrears refers to the amount not received from shareholders when the full amount called on allotment and/or calls is not paid. It is also known as 'Unpaid Calls'. It represents the debit balance of all the calls accounts. It is not mandatory for a company to maintain a separate Calls-in-Arrears Account. When maintained, the amount appears as 'Note to Accounts'.

The Articles of Association may empower directors to charge interest on calls in arrears at a stipulated rate. If the Articles are silent, Table F of the Companies Act applies, which provides for interest at a rate not exceeding 10% p.a. on unpaid amounts for the period between the day fixed for payment and the time of actual payment.

Calls in Advance refers to the amount paid by shareholders in excess of the amount due from them on allotment/calls, or when they pay part or whole of the amount not yet called-up. A separate Calls-in-Advance Account is maintained. This amount is a liability of the company and is shown under 'Equity and Liabilities' as 'current liabilities' under sub-head 'other current liabilities'. It is not added to the amount of paid-up capital.

The company is under an obligation to pay interest on calls in advance if provided by the Articles, from the date of receipt up to the date when the appropriate call is due. If the Articles are silent, Table F provides for interest at a rate not exceeding 12% p.a.