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

Assertion: The new partner is entitled to have a share in accumulated profits of the partnership firm appearing in the books at the time of his admission because he brings goodwill at the time of admission.
Reason: The gain or loss on revaluation of asset and liability is transferred to the capital accounts of the old partners in their old profits sharing ratio.

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

Sometimes a firm may have accumulated profits not yet transferred to capital accounts of the partners. These are usually in the form of general reserve, reserve and/or Profit and Loss Account. The new partner is not entitled to have any share in such accumulated profits. These are distributed among the partners by transferring it to their capital current accounts in old profit sharing ratio. Similarly, if there are some accumulated losses in the form of a debit balance of profit and loss account and/or deferred revenue expenditure appearing in the balance sheet of the firm. It should be transferred to the old partners’ capital accounts.