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Commerce · Q1213

Accounting

Graduate and Post Graduate · Commerce · question 1213

Q1213

Consider the following statements: Assertion (A): If a shareholder fails to pay the amount of one or more calls on his shares, the company may forfeit his shares. Reason (R): Even after the forfeiture of shares, that shareholder is responsible to pay the amount due from him until the company receives full amount on those shares. Now select your answer:

A.
Both A and R are true and R is the correct explanation of A
B.
Both A and R are true but R is not the correct explanation of A
C.
A is true but R is false
Answer
D.
A is false but R is true

Answer: Option C

Solution

Answer: Option C
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