Assertion (A): Calls in Arrears are deducted from Subscribed but not fully paid capital. Reason (R): Calls in Advance are added to Subscribed but not fully paid Capital. In the context of the above two statements, which of the following is correct?

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KollegeApply · Accepted Answer

Only (A) is correct. Explanation: Assertion (A) is true, Calls in Arrears are shown as a deduction from Subscribed but not fully paid Capital in the balance sheet. Reason (R) is false, Calls in Advance are not added to Subscribed Capital; they are shown separately under liabilities.

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