Assertion (A): Parul and Paresh are partners sharing profits equally. They admit Prema for 1/4th share in future profits. On the date of admission, Workmen Compensation Reserve existed in the books at ₹ 1,00,000. A claim of ₹ 1,50,000 was made by a worker and was to be accounted. The existing reserve of ₹ 1,00,000 will be distributed between Parul and Paresh and ₹ 1,50,000 being the claim amount will be transferred to the debit of Revaluation Account.

Assertion (A): Parul and Paresh are partners sharing profits equally. They admit Prema for 1/4th share in future profits. On the date of admission, Workmen Compensation Reserve existed in the books at ₹ 1,00,000. A claim of ₹ 1,50,000 was made by a worker and was to be accounted. The existing reserve of ₹ 1,00,000 will be distributed between Parul and Paresh and ₹ 1,50,000 being the claim amount will be transferred to the debit of Revaluation Account.

Reason (R): Workmen Compensation Reserve of ₹ 1,00,000 will be transferred to Workmen’s Compensation Claim Account. In addition, ₹ 50,000 be debited to Revaluation Account and credited to Workmen’s Compensation Claim Account.

In the context of the above two statements, which of the following is correct?

(a) Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A).

(b) Both, Assertion (A), and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

(c) Assertion (A) is correct but the Reason (R) is not correct.

(d) Assertion (A) is not correct but the Reason (R) is correct.