Assertion (A): Reserves and accumulated profits and losses will continue to be shown at their old values in balance sheet of new firm.
Reason (R): Reserves and Accumulated profits and losses are adjusted through Partners’ Capital A/c.
a. Both A and R are correct and R is the correct explanation of A.
b. Both A and R are correct but R is not the correct explanation of A.
c. A is correct but R is wrong
d. A is wrong but R is correct