Question

Assertion (A): Issued Share Capital and Subscribed Share Capital are always different.

Reason (R): Subscribed Share Capital is a part oflssued Share Capital. Thus, it will always be different from Issued Share Capital.

In the context of the above two statements, which of the following is correct?

विकल्प

• (A) and (R) both are correct and (R) correctly explains (A).

• Both (A) and (R) are correct but (R) does not correctly explain (A).

• Both (A) and (R) are incorrect.

• (A) is correct but (R) is incorrect.

Answer 1

Both (A) and (R) are incorrect.

Explanation:

Issued and Subscribed Share Capital are not always different; they can be the same if all issued shares are subscribed, so Assertion (A) is false.
While Subscribed Capital is a part of Issued Capital, it does not mean they are always different, so Reason (R) is also false.