Madhav, a shareholder of 1000 shares in Kumar Ltd. paid the amount due on first call and final call along with allotment money. The amount payable per share is Rs.10, which has to be paid equally on application, allotment and calls (payable on 1 January, 1 April, 1 August and 31 December). Calculate the interest payable to him on calls in advance.

Advance of first call = Rs. 2500, interest rate @ 6% p.a, time duration 1 April-1 August = 4 months Interest = Rs. 50 Advance of second call = Rs. 2500, interest rate @ 6% p.a, time duration 1 April-31 December = 9 months Interest = Rs. 112.50 Total Interest Rs. 162.50 Option (A) is incorrect. You may take second call period 4 months, i.e. September- December. Option (C) is incorrect. You may take interest rate @5% applicable on calls in arrears. Option (D) is incorrect. You may take combined period of 9 months for both advances.