Practicing Success
Practicing Success
CUET Preparation Today
| Assertion: Undistributed profits or losses appearing in the balance sheet at the time of admission should be transferred to the old partner’s capital/current account in the new ratio. Reasoning: Undistributed profits or losses appearing in the balance sheet at the time of admission belong to the old partners as they are earned by them. |
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A. Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A. Assertion (A) is true but Reasoning (R) is not correct. Assertion (A) is not true but Reasoning (R) is correct. |
| Assertion (A) is not true but Reasoning (R) is correct. |
| Undistributed profits or losses appearing in the balance sheet at the time of admission should be transferred in the old ratio. |
