Question

Assertion (A): In case of retirement, the retiring partner is entitled to get interest @ 6% p.a. till the amount due to him is paid off.

Reason (R): At his option, the retiring partner, instead of the interest, may take that share of profits which has been earned by the firm by the use of the amount due to him.

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

Options

• Both (A) and (R) are correct and (R) is the correct reason of (A).

• Both (A) and (R) are correct but (R) is not the correct reason of (A).

• Only (R) is correct.

• Both (A) and (R) are wrong.

Answer 1

Both (A) and (R) are correct and (R) is the correct reason of (A).