Assertion: The Income and Expenditure A/c is equivalent to the Profit and Loss A/c of a business enterprise.
Reason: Income and Expenditure A/c disclosed revenue nature items only.
1
Both A and R are true, and R is the correct explanation of A.
2
Both A and R are true, but R is not the correct explanation of A.
3
A is true but R is false.
4
A is false but R is true.