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Commerce · Q2102

Accounting

Graduate and Post Graduate · Commerce · question 2102

Q2102

Assertion (A): Sinking fund is a charge against profit and loss account. Reason (R): Sinking fund is created for repayment of a long-term liability. Which of the following statements is correct?

A.
(A) is correct, but (R) is incorrect
B.
Both (A) and (R) are correct
C.
(A) is incorrect, but (R) is correct
Answer
D.
Both (A) and (R) are incorrect

Answer: Option C

Solution

Answer: Option C
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