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 partner's interest on capital is paid only from profits.
Reason (R): Interest on capital is a profit appropriation that must be provided regardless of profit or loss.

Question : Assertion (A): Dissolution of Partnership results in no change in the economic relationship.
Reason (R): Dissolution of Partnership firm results in the ending of the economic relationship.