Assertion(A): Retiring Partner gets interest @6% p.a on his Loan Account, till the time amount due to him is not paid.
Reason (R): The amount due to him is transferred to his 'Loan Account'.
Choose the correct option out of following:
Answer & explanation
Correct answer: option 3
Both statements are true.. interest is paid @6%p.a. and this amount can be transferred to his loan account.