Practicing Success
Practicing Success
CUET Preparation Today
| Assertion: It is necessary to show the true position of the firm at the time of admission of a new partner. Reasoning: The gain or loss on revaluation which is transferred to all the partner’s capital account in the new profit sharing ratio. |
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 true but Reasoning (R) is not correct. |
| If the revaluation account finally shows a credit balance then it indicates net gain and if there is a debit balance then it indicates net loss which will be transferred to the capital accounts of the old partners in old ratio. |
