In share capital balance sheet if there are arrears why do we first multiply the arrear shares into amt of share and then subtract the arrears multiplied with the amt that is not paid

Dear Student


As per the provisions of companies act, we have to follow the predefined format for preparation of books of accounts of the companies,
Therefore we prepare notes to accounts as per Schedule III.



Hence for the sake of presentation and statutory requirement, we write arrears separately.

Regards