There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Shares issued as fully paid-up for consideration other than cash are shown as 'Subscribed and fully Paid-up' under 'Subscribed Capital'.
Reason (R):  Shares when issued for consideration other than cash are disclosed in the Note to Account on Share Capital. In case of fully paid-up shares they are shown as 'Subscribed and fully Paid-up' under 'Subscribed Capital.

Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

There are instances where a company enters into an arrangement with the vendors from whom it has purchased assets, whereby the latter agrees to accept, the payment in the form of fully paid shares of the company issued to them. Normally, no such cash is received for issue of shares. These shares can also be issued either at par, at premium or at discount, and the number of shares to be issued will depend upon the price at which the shares are issued and the amount payable to the vendor. It is shown in subscribed and fully paid up capital.