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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.
Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.
- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false .
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Directions : In the following questions, a statement of Assertion (A)...
Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.
Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.
The correct answer is option 'D' - Assertion (A) is false, but Reason (R) is true.
Explanation:
Capital Account:
- The capital account is maintained to record the capital contribution made by the partners in a partnership firm.
- The capital account shows the initial investment made by the partners and any subsequent additions or withdrawals.
- The capital account is a personal account and is shown in the balance sheet.
Current Account:
- The current account is maintained to record the day-to-day business transactions of a partnership firm.
- The current account records all the revenue and expense transactions, including interest on capital.
- The current account is a nominal account and is closed at the end of the accounting period by transferring the net profit or loss to the capital account.
Interest on Capital:
- In a partnership firm, partners may contribute capital to the business, and they are entitled to receive interest on their capital.
- Interest on capital is a charge against the profit of the partnership firm and is treated as an expense.
- As per the rules of accounting, expenses are recorded on the debit side of the current account.
Explanation of Assertion (A):
The assertion states that the interest on capital is recorded in the debit side of the current account when fixed capital is maintained. However, this is not correct. The interest on capital is recorded as an expense in the current account, and expenses are recorded on the debit side. Therefore, Assertion (A) is false.
Explanation of Reason (R):
The reason states that the capital of the partners is fixed, and all the transactions are recorded in the current account. This is true because the current account is used to record all the revenue and expense transactions of the partnership firm, including the interest on capital. The capital account, on the other hand, is used to record the initial investment and any subsequent additions or withdrawals. Therefore, Reason (R) is true.
Conclusion:
In conclusion, Assertion (A) is false because interest on capital is recorded as an expense in the current account, not on the debit side. However, Reason (R) is true as all the transactions, including interest on capital, are recorded in the current account.
Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.
The correct answer is option 'D' - Assertion (A) is false, but Reason (R) is true.
Explanation:
Capital Account:
- The capital account is maintained to record the capital contribution made by the partners in a partnership firm.
- The capital account shows the initial investment made by the partners and any subsequent additions or withdrawals.
- The capital account is a personal account and is shown in the balance sheet.
Current Account:
- The current account is maintained to record the day-to-day business transactions of a partnership firm.
- The current account records all the revenue and expense transactions, including interest on capital.
- The current account is a nominal account and is closed at the end of the accounting period by transferring the net profit or loss to the capital account.
Interest on Capital:
- In a partnership firm, partners may contribute capital to the business, and they are entitled to receive interest on their capital.
- Interest on capital is a charge against the profit of the partnership firm and is treated as an expense.
- As per the rules of accounting, expenses are recorded on the debit side of the current account.
Explanation of Assertion (A):
The assertion states that the interest on capital is recorded in the debit side of the current account when fixed capital is maintained. However, this is not correct. The interest on capital is recorded as an expense in the current account, and expenses are recorded on the debit side. Therefore, Assertion (A) is false.
Explanation of Reason (R):
The reason states that the capital of the partners is fixed, and all the transactions are recorded in the current account. This is true because the current account is used to record all the revenue and expense transactions of the partnership firm, including the interest on capital. The capital account, on the other hand, is used to record the initial investment and any subsequent additions or withdrawals. Therefore, Reason (R) is true.
Conclusion:
In conclusion, Assertion (A) is false because interest on capital is recorded as an expense in the current account, not on the debit side. However, Reason (R) is true as all the transactions, including interest on capital, are recorded in the current account.
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Directions : In the following questions, a statement of Assertion (A)...
The interest on capital is recorded in the credit side of the current account.
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer?.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Here you can find the meaning of Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The interest on capital is recorded in the debit side of the Current Account when fixed capital is maintained.Reason (R): The capital of the partners is fixed, and all the transactions are recorded in the current account.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice Commerce tests.
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