Assertion (A) : In sinking fund, a fixed amount at regular intervals is deposited. Reason (R) : In Savings Bank Account, any amount, any time can be deposited.
Answer: Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Step-by-step solution
Step 1: Analyze Assertion (A)
A sinking fund is a fund established by an organization to set aside money over time to retire a debt, replace an asset, or meet a future financial obligation. Typically, fixed amounts are deposited into the fund at regular intervals to ensure the target amount is reached by a specific date. This statement accurately describes a characteristic of a sinking fund.
Step 2: Analyze Reason (R)
A savings bank account is a type of bank account that allows customers to deposit and withdraw money, while also earning interest. One of the primary features of a savings account is its flexibility, allowing account holders to deposit any amount of money at any time, subject to bank operating hours or online banking availability. This statement accurately describes a characteristic of a savings bank account.
Step 3: Evaluate Relationship between A and R
Both the assertion and the reason are individually true statements. However, the reason (flexibility of deposits in a savings bank account) does not explain why a fixed amount is deposited at regular intervals in a sinking fund. These are two distinct financial concepts, and one does not logically explain the other.