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

Assertion (A):  It is necessary to show the true position of the partnership firm at the time of admission of a new partner in the firm.
Reason (R):  The gain or loss on revaluation is transferred to all the partner’s capital accounts in the new profit-sharing ratio.

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

The correct answer is option 3- Assertion (A) is true, but Reason (R) is False.

Assertion (A):  It is necessary to show the true position of the partnership firm at the time of admission of a new partner in the firm. This is true. Before admitting a new partner, it's essential to have an accurate picture of the firm's financial position, including the valuation of assets and liabilities. This ensures that the new partner's share is calculated fairly.

Reason (R):  The gain or loss on revaluation is transferred to all the partner’s capital accounts in the new profit-sharing ratio. This is false. The gain or loss on revaluation is distributed among old partners in their old profit-sharing ratio because this belongs to old partners.

Thus, assertion is true but reason is false. So, the correct answer is option 3.