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Home Questions BFWM2QXS67
Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
Assertion (A): Admission of a partner leads to a situation where one or more partners forego their profit share in favour of the new partner.
Reason (R): New partners can be given additional profit shares while profit shares of old partners are not changed.
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:
When new partner admit into a firm. old partners share is always reduced.
Hence, assertion(A) is true and Reasoning( R) is false.

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