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    Question

    Uncalled liability on shares and other partly paid

    investments will be shown under _______ head according to schedule III of Companies Act 2013.
    A Share Holders' Fund Correct Answer Incorrect Answer
    B Contingent Liabilities and Commitments Correct Answer Incorrect Answer
    C Current Liability Correct Answer Incorrect Answer
    D Contingent Liabilities Correct Answer Incorrect Answer

    Solution

    Uncalled liability on shares and other partly paid investments will be shown under the Contingent Liabilities and Commitments head according to Schedule III of the Companies Act, 2013. Contingent Liabilities refer to potential obligations that may arise in the future, depending on the occurrence of certain events. In the case of uncalled liability on shares and partly paid investments, the shareholders have a contingent liability to pay the remaining amount when called upon by the company. According to Schedule III, these contingent liabilities, including uncalled liability on shares and partly paid investments, are to be disclosed separately under the Contingent Liabilities and Commitments section in the financial statements of the company. This disclosure ensures that stakeholders are aware of potential future obligations that may impact the financial position of the company.

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