There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below. Assertion (A): Reserve Capital is a part of Subscribed Capital which the company decides to call at the time of winding up of the company. |
Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A). Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A). Both Assertion (A) and Reason (R) are not correct. Assertion (A) is not correct but the Reason (R) is correct. |
Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A). |
Reserve Capital: A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company. Such uncalled amount is called ‘Reserve Capital’ of the company. It is available only for the creditors on winding up of the company. |