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Home Questions U99TGGPQ76
Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-
Assertion: There is need of finding the sacrificing ratio in case of retirement and death of a partner.
Reasoning: The gaining ratio is used by the remaining partner to compensate the share of the outgoing or dead partner.

Options:

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.

Correct Answer:

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

Explanation:

Sacrificing ratio is find out in case of admission of a partner. In case of retirement, gaining ration is to be found.

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