Question : Assertion (A): A profit and loss appropriation account is prepared to show how profits are distributed among partners in accordance with the Partnership Deed.
Reason (R): Only the working partner(s) have access to the books of accounts.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is False
Option 4: Both Assertion (A) and Reason (R) are not correct
Correct Answer: Assertion (A) is true but Reason (R) is False
Solution : Appropriation of Profit and Loss The account is prepared to show the profit distribution among the partners. The assertion is correct. All partners, whether working or not, have access to the firm's books. Reason is incorrect.
Hence the correct answer is option 3.
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