The Articles of Association of a company usually empower the director to charge interest at a stipulated rate on calls in arrears. According to Table A of Companies Act 1956 interest at the rate of 5% p.a. is to be charged on unpaid calls from the due date of the call up to the actual payment.

     JE for interest receivable on call in arrears
Shareholders A/c….Dr.
     To Interest on Calls in Arrears A/c

     For receipt of interest
Interest on Calls in Arrears A/c…Dr.
        Shareholders A/c

According to Table A of Companies Act 1956 interest at the rate of 6% p.a. is to be paid on calls in advance from the actual payment up to due date of the call.

      JE for Interest due
Interest on Calls in Arrears A/c…Dr.
        To Shareholders A/c

Payment of interest
Shareholders A/c …Dr.
      Interest on Calls in Advance A/c