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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?
Options
(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.
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Solution
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.
