Question

Assertion (A): Akhil Ltd issued equity shares to Sunny Ltd for consideration other than cash.

Reason (R): Akhil Ltd did not receive cash from Sunny Ltd for issue of shares on purchase of running business.

(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A)
(C) Assertion (A) is true but Reason (R) is false.
(D) Assertion (A) is false but Reason (R) is true.

Answer 1

Correct option is (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)