Question :

Assertion (A): Income and Expenditure Account is akin to Profit and Loss Account.
Reason (R): The Not-for-Profit Organisations are not required to prepare financial statements at the end of the each accounting period.

Option 1:

Both Assertion (A) and Reason (R) are true and (A) is correct explanation of Reason (R)

Option 2:

Both Assertion (A) and Reason (R) are true but (A) is not correct explanation of Reason (R)

Option 3: Assertion (A) is true but Reason (R) is false

Option 4: Reason (R) is true but Assertion (A) is false

Question :

Assertion (A): NPO do not maintain any capital account. Instead they maintain capital fund which is also called general fund that goes on accumulating received from year to year.
Reason (R): The capitalised items like legacies, entrance fees and life membership fees directly added to the capital fund.

Option 1:

Both Assertion (A) and Reason (R) are true and (R) is correct explanation of Reason (A)

Option 2:

Both Assertion (A) and Reason (R) are true but (A) is not correct explanation of Reason (R)

Option 3: Assertion (A) is true but Reason (R) is false

Option 4: Reason (R) is true but Assertion (A) is false

Question : Assertion (A): Partnership Deed is a legal document signed by all the partners.
Reason (R): Any type of charitable institution running as a not-for-profit organization will not be considered as a business.

Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Option 2: Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)

Option 3: Assertion (A) is true but Reason (R) is false

Option 4: Assertion (A) is false but Reason (R) is true

Question : Assertion (A): The partners are the agents as well as principals of the firm.
Reason (R): Partnership is a business relationship among two or more persons to share profits and losses of the business carried on by all or any of them acting for all.

Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Option 2: Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)

Option 3: Assertion (A) is true but Reason (R) is false

Option 4: Assertion (A) is false but Reason (R) is true

Question : Assertion (A): Salary and commission are payable to the working partners for their efforts. Reason (R): No partner shall be paid such remuneration as salary, commission, etc. if the partnership deed is silent on such matter.

Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Option 2: Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)

Option 3: Assertion (A) is true but Reason (R) is false

Option 4: Assertion (A) is false but Reason (R) is true