| Assertion : |
| Amount received in advance by a company, on calls not yet made should be shown in the Balance Sheet under |
| Other Current Liabilities. It is called 'Calls-in-Advance'. |
| Reason (R) : |
| Company may receive amount against calls not yet made only if its Articles of Association permits. |
| Choose the Correct Option from the following : |
A) Assertion and Reason both are correct and Reason is the correct explanation of assertion
B) Assertion and Reason both are correct but Reason is not correct explanation of assertion
C) Only Assertion is correct.
D) Reason is correct but Assertion is not correct
Correct Answer: A
Solution :
Assertion and Reason both are correct and Reason is the correct explanation of assertion
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