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Home Questions 665RSPBK8E
Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-
Assertion: Ram, Rahim and Ron share profits in the ratio 2 : 3 : 5. Ram decides to retire. The new profit sharing ratio is 3 : 5. If the profit earned was Rs 1,50,000 before retirement. Rahim’s share is ₹ 45,000.
Reasoning: The profits of Rs 1,50,000 are to shared in the new profit sharing ratio.

Options:

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.

Correct Answer:

Assertion (A) is true but Reasoning (R) is not correct.

Explanation:

Rahim will get 45,000 as his share of profit but the profits are shared in the old profit sharing ratio. So R is Wrong.

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