Given below are two statements: One is labeled as Assertion A and the other is labeled as Reason R.
Assertion A: When a partner retires, all the assets and liabilities are revalued according to current value.
Reason R: The balance sheet should show the correct values of assets and liabilities.
In the light of the above statements, choose the most appropriate answer from the options given below:
1
Both A and R are correct and R is the correct explanation of A
2
Both A and R are correct but R is not the correct explanation of A
3
A is correct but R is not correct
4
A is not correct but R is correct