Practicing Success
Practicing Success
CUET Preparation Today
| "Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) Assertion (A): Transfer to General reserves is shown in P & L Appropriation A/c. Reason (R): General reserves are charge against the profits. In the context of the above statements, which one of the following is correct? Codes: " |
Both (A) and (R) are correct and reasoning R is correct explanation"
Both (A) and (R) are correct and reasoning R is incorrect explanation"
(A) is wrong, but (R) is correct.
(A) is correct, but (R) is wrong.
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| (A) is correct, but (R) is wrong. |
| Reserves are not the charge against profit, its appropriation of profit. So it is shown in the P & L appropriation account. |
