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

Assertion (A):  Share Capital shown in the Balance Sheet includes both Equity Share capital and Preference Share Capital.
Reason (R): Share Capital shown in the Balance Sheet includes Equity Share Capital and not Preference Share Capital.

Only Assertion (A) is correct.

* Equity Share Capital is the funds generated by a company through issuing Equity shares (also known as ordinary shares). It consists of company shares that the owners decide to sell to individual investors and institutions in the stock market. The Equity Shareholders become stakeholders in the organisation, and these investors are eligible for both ownership and voting rights in the company to select their management.
* Preference Share Capital is the funds generated by a company through issuing preference shares (also known as Preference stock). Preference Shareholders have the first right to receive dividends even before equity shareholders. They are also part owners of the company, but they do not get any voting rights to select its management. They are entitled to a fixed rate of compensation every time the company decides to declare a dividend. They also have the right to claim repayment of capital if the company dissolves.
* Share Capital on a Balance Sheet The technical accounting definition of share capital is the par value of all equity securities, including common and preferred stock, sold to shareholders.