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.
Reason (R): New partners can be given additional profit shares while profit shares of old partners are not changed.
Answer & explanation
Correct answer: option 3
When new partner admit into a firm. old partners share is always reduced.
Hence, assertion(A) is true and Reasoning( R) is false.
Hence, assertion(A) is true and Reasoning( R) is false.