question_answer

Assertion (A) :

In the absence of provision in the partnership deed, loan given to a partner by the firm without any agreement to interest on loan. It is treated as interest free loan.

Reason (R) :

In the absence of provision in the partnership deed, interest on loan to partner should be charged @6% p.a.

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 but Reason is not correct

D) Reason is correct but Assertion is not correct