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

D. Both (A) and (R) are incorrect

Answer: Option C