Step 1: Understanding the assertion.
Amides are compounds where a hydroxyl group (–OH) of a carboxylic acid is replaced by an amino group (–NH\textsubscript{2}).
This process happens during peptide bond formation between amino acids, hence the assertion is correct.
Step 2: Understanding the reason.
Transamination is a key biochemical reaction where an amino group is transferred, often initiating processes that can eventually form amide linkages (especially in biosynthesis).
So in a broader biochemical context, transamination contributes to the formation of amides, making the reason valid.
Step 3: Conclusion.
Both Assertion and Reason are true, and Reason correctly explains the Assertion.