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Home Questions 72QHVT2SQD
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-

Assertion: Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
Reasoning: There is no specific definition of partnership in the Partnership Act 1932.

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:

The correct answer is option 3- Assertion (A) is true but Reasoning (R) is not correct.

Assertion: Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.  This is true.

Reasoning: There is no specific definition of partnership in the Partnership Act 1932. This is not true. The definition of partnership is provided in the partnership act 1932. Section 4 of the Indian Partnership Act 1932 defines partnership as the ‘relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all’.

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