Assertion: Ajay and Vijay are partners sharing profits and losses in the ratio of 3:2, having fixed capitals of ₹ 6,00,000 and ₹ 4,00,000 respectively. According to Partnership Deed, Ajay and Vijay are entitled to get annual salary of ₹ 30,000 and ₹ 20,000 respectively. Vijay advised that their salary should be credited in their capital accounts.
Reason: In case of fixed capital accounts, remuneration of the partners is credited to their Current Accounts.
a) Assertion is correct but Reason is wrong.
b) Assertion is wrong but Reason is correct.
c) Both assertion and reason are wrong.
d) Both assertion and reason are correct.
