question_answer

Assertion (A) :

Rent is paid for the use of Asset of a partner in the business. Rent paid is an expense for the business, It is a charge against the profit so it is shown in profit and loss account.

Reason (R) :

When Rent paid to partner is treated as an appropriation, it is shown in the credit side Profit and Loss Appropriation Account.

Choose the Correct Option from the following :

A) Assertion and Reason both are correct and Reason is the correct explanation of assertion

B) Assertion and Reason both are correct but Reason is not correct explanation of assertion

C) Only Assertion is correct

D) Reason is correct but Assertion is not correct