Assertion (A): In preparing final accounts, if closing stock is given in the trial balance, it is shown only in the Balance Sheet. Reason (R): Any item appearing in the trial balance is treated only at one place i.e. either in the trading and profit & loss a/c or in the balance sheet. Now, select the correct answer:

The correct answer is: A. Both (A) and (R) are true and (R) is the correct explanation of (A)

Explanation:

(A) is true because closing stock is an asset and is shown in the balance sheet.

(R) is true because any item appearing in the trial balance is treated only at one place i.e. either in the trading and profit & loss a/c or in the balance sheet.

(R) is the correct explanation of (A) because closing stock is an asset and is shown in the balance sheet.

Here is a brief explanation of each option:

• Option A: Both (A) and (R) are true and (R) is the correct explanation of (A). This is the correct answer because (A) is true because closing stock is an asset and is shown in the balance sheet, and (R) is true because any item appearing in the trial balance is treated only at one place i.e. either in the trading and profit & loss a/c or in the balance sheet. (R) is also the correct explanation of (A) because closing stock is an asset and is shown in the balance sheet.
• Option B: Both (A) and (R) are true, but (R) is not correct explanation of (A). This is not the correct answer because (R) is the correct explanation of (A).
• Option C: (A) is true but (R) is false. This is not the correct answer because (R) is true.
• Option D: (A) is false but (R) is true. This is not the correct answer because (A) is true.