Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R)
Assertion (A): Interest on the Loan by the partner is shown in Profit & Loss A/c.
Reason (R): Interest on the Loan by the partner is given only when Partnership Firm earns the profits.
In the context of the above statements, which one of the following is correct?
1
(A) is correct, but (R) is wrong.
2
Both (A) and (R) are correct.
3
(A) is wrong, but (R) is correct.
4
Both (A) and (R) are wrong.