12th Class Accountancy Fundamentals of Partnership Question Bank Assertion and Reason - Accounting for Partnership Firm - Fundamental

Assertion (A):

When Partners Capitals are fixed, balance of Current Account does not change when a partner introduces additional capital or some part of capital is withdrawn by him.

Reason (R):

Amount of capital and other appropriations are shown in the credit side of Partners Current 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

Correct Answer: C

Solution :

Only Assertion is correct