Question

Assertion (A): At the time of retirement, the retiring partner is entitled to get his share of general reserve and credit balance in Profit & Loss Account.

Reason (R): Retiring partner is not entitled to share of general reserve and credit balance in Profit & Loss Account since he gets his share of goodwill.

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 the correct explanation of (A).

• Both (A) and (R) are false.

• (A) is true, but (R) is false.

Answer 1

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