Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).
Assertion (A) : Profit or loss on revaluation account is not transferred to incoming partner's capital Account.
Reason (R) : Profit or loss on revaluation at the time of admission of a partner belongs to pre-admission period hence belongs to old partners.
In the context of the above statements, which one of the following is correct?
1
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
2
Both Assertion (A) and Reason (R) are true, and Reason (R) is the not correct explanation of Assertion (A).
3
Assertion (A) is true, but Reason (R) is false.
4
More than one of the above
5
None of the above