Read the following passage about "Calls in Advance," a concept related to Accounting for Share Capital, and answer the questions below.

When a company issues shares, it may require shareholders to pay a portion of the share price upfront, known as a "call in advance." This requirement serves the purpose of ensuring that the company has enough cash to cover future expenses. The call in advance is recorded in the liabilities section of the company's balance sheet until the shareholder pays the full share price.

To record a call in advance, the company debits cash and credits calls in advance. When the shareholder pays the full share price, the company credits calls in advance and debits share capital.

The impact of a call in advance on the financial statements is an increase in assets and liabilities. Specifically, it increases the cash balance in the assets section and the calls in advance balance in the liabilities section.