The journal entry to record the amount receivable when a call is made by the company is:
A) DR Call CR Share capital
B) DR Allotment CR Share capital
C) DR Share capital CR Call
D) DR Cash trust CR Call

Question

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When a company makes a call, it is essentially requesting payment from its shareholders for either a portion of the share capital that has not yet been paid or for a new issue of shares. The correct journal entry to record this amount receivable is to debit (DR) the Call account, which represents the amount due from shareholders, and credit (CR) Share Capital, indicating an increase in the company's equity as it receives or expects to receive the funds.

The Journal Entry to Record the Amount Receivable When a Call