Assertion (A): Workmen compensation reserve is credited to partners’ capital or current accounts in their old profit sharing ratio.
Reason (R): Reserves exist in the books of firm, transferred to Partners’ Capital Accounts only.
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.
