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Assertion (A): The capital account of a partner does not show a debit balance inspite of regular and consistent losses year after year.Reason (R): All transactions relating to profit or loss, drawings, salaries etc. are shown in current not in capital account in case of the fixed capitals. a) Both A and R are true and R is the correct explanation of A b) Both A and R are true and R is not the correct explanation of A c) A is true , but R is false d) A is false , but R is true

Answer»

Correct option is a) Both A and R are true and R is the correct explanation of A



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