Question : Assertion (A): Rent paid to a partner is transferred to the debit of the profit and loss account but not to the debit of the profit and loss appropriation account.
Reason (R): Rent paid to a partner is a cost that is deducted from profits rather than being appropriated from profits. As a result, it is added to the Profit and Loss Account's debit.
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: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Solution : Both Assertion and Reason are true and Reason correctly explain the assertion.
Hence the correct answer is option 1.
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