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 gain or loss on revaluation is distributed among old partners in their old profit-sharing ratio because this belongs to old partners.