Question : Assertion A: Issued share capital and subscribed share capital are always the same.
Reason R: Subscribed capital is part of issued share capital. Thus it is always equal to the issued share capital.
In the context of the above two statements, which of the following is correct?
Option 1: Assertion A and Reason R are correct but Reason R is not correct explanation of Assertion A
Option 2: Both Assertion A and Reason R are correct and Reason R is the correct explanation of Assertion A
Option 3: Only Assertion A is correct
Option 4: Assertion A and Reason R are not correct
Correct Answer: Assertion A and Reason R are not correct
Solution : Answer = Assertion A and Reason R are not correct
Subscribed capital is the total value of shares for which shareholders have agreed to subscribe, while issued capital is the portion of the subscribed capital that has been issued and allotted to shareholders by the company.
