Question

Assertion (A): At the time of retirement of a partner, loss on revaluation is debited to the Capital accounts of remaining partners in their old ratio.

Reason (R): At the time of retirement of a partner, gain on revaluation is credited to the Capital accounts of all partners in their old ratio.

In the context of the above two statements, which of the following is correct?

Options

• Both (A) and (R) are true, but (R) is not the correct explanation of (A).

• Both (A) and (R) are true and (R) is a correct explanation of (A).

• Both (A) and (R) are false.

• (A) is false, but (R) is true.

Answer 1

(A) is false, but (R) is true.