Practicing Success
Read the given below two statements and mark the correct answer. Assertion (A): Any Increase in capital is credited and decrease in capital is debited. |
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). Assertion (A) is true but Reason (R) is False Assertion (A) is false but Reason (R) is true |
Assertion (A) is true but Reason (R) is False |
The correct answer is option 3- Assertion (A) is true but Reason (R) is False. Assertion (A): Any Increase in capital is credited and decrease in capital is debited. This is true. Capital represents the proprietor funds. Any increase in capital is credited and decrease is debited. Capital can be increased or decreased by profit and drawings respectively. |