Question : Assertion (A): A Profit and Loss Appropriation Account is prepared to show the distribution of profits among partners as per the provision of Partnership Deed.
Reason (R): Only working partner(s) can inspect the books of accounts.

Question : Assertion (A): A partnership deed may contain clauses that differ from those found in the Partnership Act of 1932, and in such cases, the provisions of the partnership deed take priority.

Reason (R): When partners cannot come to an agreement on a topic, the Partnership

Question : Assertion (A): A profit and loss adjustment account is required for the correction of errors or omissions.
Reason (R): This account is prepared to correct any errors or omissions that were missed while preparing final accounts and discovered after profits were

Question : Assertion (A): A partnership firm does not exist as a separate legal entity apart from the partners who comprise it.

Reason (R): The Central Government has established a limit of 100 partners in a firm.

Question : Assertion (A):  If the partnership deed does not address the payment of interest, the interest on loans to partners is charged at a rate of 6% per year.
Reason (R): In the absence of Partnership Deed, provisions of the Partnership Act, 1932 apply. Therefore, 6%