Read the following statements - Assertion (A) and Reason (R): Assertion: Recovery of loan is a capital receipt. Reason: Recovery of loan leads to creation of asset. From the given alternatives choose the correct one:

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

Assertion (A) is true but Reason (R) is false.

Recovery of loan is a capital receipt as it leads to reduction of an asset.