Calls are demands by company to shareholders to pay their share in installments. Purpose: Allows shareholders to invest in stages rather than lump sum. First Call: First installment demand. Journal Entry: Debit Calls Receivable/Calls A/c, Credit Called-Up Capital. Second Call: Next installment demand. Subsequent Calls: Final calls complete the paid-up capital. Accounting Treatment: Each call is journalized separately, Creating a Calls Account (receivable side) to track outstanding amounts. Call Money Received: Debit Bank, Credit Calls Receivable. Calls in Arrears: Outstanding calls not yet received. Shown as deduction from Share Capital on Balance Sheet. Calls Forfeited: Shares forfeited when shareholder fails to pay calls (if allowed by articles). Forfeiture Entry: Debit Forfeited Shares Account, Credit Called-Up Capital. Interest on Calls in Arrears: Some companies charge interest on unpaid calls. Journal Entry: Debit Interest Receivable, Credit Interest Income. Calls in Advance: Shareholders may pay calls before due date. Journal Entry: Debit Bank, Credit Calls in Advance (Liability). Reconciliation: Opening Calls Receivable + New Calls - Collections = Closing Calls Receivable. Balance Sheet Presentation: Calls Receivable shown as deduction from Share Capital (negative item); Calls in Advance shown as liability. Exam tip: Understand the mechanics of calling and collecting amounts; practice journal entries for each call; handle calls in arrears and advance correctly; know forfeiture implications.