0

Assertion (A): Admission of a partner means reconstitution of the partnership whereby old partnership ceases to exist and new partnership comes into existence.

Reason (R): When a partner is admitted, number of partners increase and also the profit sharing ratio changes. However, the firm continues, Thus, it is a reconstitution of partnership.

In the context of above two statements, which of the following is corrrect?

(a) Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A).

(b) Both, Assertion (A), and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

(c) Assertion (A) is correct but the Reason (R) is not correct.

(d) Both Assertion (A) and Reason (R) are incorrect.

Anurag Pathak Changed status to publish June 8, 2023
Add a Comment