Practicing Success
Practicing Success
CUET Preparation Today
| Assertion (A): Anahat and Parminder are partners sharing profits in the ratio of 2:1. They admit Rubayat as partner w.e.f. 1st January 2021. On that date, Goodwill existed in the books at ₹1,00,000. Goodwill of ₹50,000 was written off by debiting capital accounts of Anahat and Parminder in the ratio of 2:1. While balance goodwill was carried forward in the Balance Sheet. Reason (R): Goodwill existing in the books is purchased goodwill and therefore, is not written off. |
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. Both Assertion (A) and Reason (R) are False. |
| Both Assertion (A) and Reason (R) are False. |
| ₹1,00,000 goodwill must be written off from the books completely not partially. Thus both Assertion and Reason are false. |
