Question : Assertion (A): A loan from a relative of a partner is an external liability.

Reason (R): It is not transferred to the Realisation Account.

Question : Assertion (A): The partner’s Private Property can be applied to pay the firm’s debt.

Reason (R): In a partnership firm, partners have unlimited liability.

Question : Assertion (A) Currency held by the public is a monetary liability of the central bank.

Reason (R) Central bank controls credit, whereas commercial banks create credit with the currency held by the public.

Question : Assertion (A): Balance at Banks is transferred to Realisation Account.

Reason (R): Balance at Bank is not to be realised but instead distributed in its present form.

Question : Assertion: A purchase of furniture on credit will not result in flow of cash or cash equivalents
Reason R: - purchased of furniture on credit will not involve cash.

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