There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Paid-up Capital means the share capital called up by the company on the Subscribed capital.
Reason (R):  When a company issues shares amount of which is receivable in installments, it calls upon the shareholders to pay the amount as called against which the shareholders pay. Thus, it is the Paid-up Capital.

Assertion (A) is not correct but the Reason (R) is correct.

Paid up Capital: It is that portion of the called up capital which has been actually received from the shareholders. When the shareholders have paid all the called amount, the called up capital is the same to the paid up capital. If any of the shareholders has not paid amount on calls, such an amount may be called as ‘calls in arrears’. Therefore, paid up capital is equal to the called-up capital minus call in arrears.