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Home Questions GJQ9FK5PF4
Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

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

Assertion (A):  Purchased goodwill means goodwill for which consideration has been paid.
Reason (R):  It is shown in the Balance Sheet as a liability.

Options:

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true, and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true, but Reason (R) is False

Assertion (A) is False, but Reason (R) is True

Correct Answer:

Assertion (A) is true, but Reason (R) is False

Explanation:

Goodwill is shown on the asset side.

CUET Questions