Practicing Success
Practicing Success
CUET Preparation Today
| Assertion: Undistributed profits or losses appearing in the balance sheet at the time of admission should be transferred to the old partner’s capital/current account in the sacrificing ratio. Reasoning: Undistributed profits or losses appearing in the balance sheet at the time of admission belong to the old partners as they are earned by them. |
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. |
| Assertion (A) is not true but Reasoning (R) is correct. |
| Assertion(A) is not true as at the time of admission of new partner undistributed profit or losses are distributed to all partners in new ratio .Reason (R) is correct as undistributed profits or losses appearing in the balance sheet at the time of admission should be transferred in the old ratio. |
