Assertion [A] : |
When a running business of other company is purchased, and payment is settled by issue of shares, in such a case, if purchase consideration is less man the net assets, then difference is credited to the Capital Reserve. |
Reason (R) : |
Capital Reserve is a capital loss for the company. |
Choose the Correct Option from the following: |
A) Assertion and Reason both are correct and Reason is the correct explanation of the assertion
B) Assertion and Reason both are correct but Reason is not correct explanation of assertion
C) Both Assertion and Reason are not correct
D) Only Assertion is correct
Correct Answer: D
Solution :
Only Assertion is correctYou need to login to perform this action.
You will be redirected in
3 sec