There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Surplus, i.e., Statement of Profit and Loss is another name for Statement of Profit and Loss.
Reason (R):  Surplus, i.e., Statement of Profit and Loss is an item of the Balance Sheet that shows accumulated profits or losses whereas the Statement of Profit and Loss shows the net profit or net loss for the year.

Assertion (A) is not correct but the Reason (R) is correct.

Surplus: Balance in statement of profit and loss; disclosing allocations and Appropriation such as dividend, bonus shares, transfer to/from reserve, etc. Significant additions/modifications regarding disclosure of reserve and surplus are as follows:
a) A reserve specifically represented by earmarked investments shall be termed as “Fund”.
b) ‘Debit’ balance of statement of profit and loss shall be shown as a negative figure under ‘Surplus’ head.
c) The balance of “Reserve and Surplus” after adjusting negative balance of Surplus, if any, shall be shown under “Reserve and Surplus” read even if the resulting figure is ‘negative’.
d) Share options outstanding account has been recognised as a separate item under ‘Reserve and Surplus’. ICAI’s Guidance Note on Accounting for Employee share based payments requires a credit balance in the ‘Stock option outstanding Account’ to be disclosed in balance sheet under separate heading’ between share capital and reserves and surplus as a part of shareholders fund.