Question

Assertion (A): Lotus Flowers Ltd. did not receive First & Final Call of ₹ 3 per share on 1,000 shares. These 1,000 Shares will be shown as 'Subscribed but not fully paid-up' under 'Subscribed Capital'.

Reason (R): The company has not received ₹ 3 per share on 1,000 Equity Shares. Hence, these shares are not fully paid-up.

In the context of above two statements, which of the below options is correct?

Options

• Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

• Assertion (A) is false but Reason (R) is true.

• Both Assertion (A) and Reason (R) are false.

Answer 1

Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).