Assertion (A): Admission of a partner means reconstitution of the partnership whereby old partners ceases to exist and new partnership comes into existence
Assertion (A): Admission of a partner means reconstitution of the partnership whereby the old partnership ceases to exist and a new partnership comes into existence
Reason (R):  When a partner is admitted, the number of partners increases, and also the profit–sharing ratio changes. However, the firm continues. Thus, it is a reconstitution of partnership.
- Both Assertion and Reason are true and Reason is the correct explanation of Assertion.
- Both Assertion and Reason are true and Reason is not the correct explanation of Assertion.
- Assertion is True but Reason is False.
- Both Assertion and Reason are False.
Anurag Pathak Changed status to publish July 3, 2023
Ans – a)
Explanation:-
When a new partner admitted into the firm. the partnership agreement among old partners ends and new agreement is prepared with new patners with new profit sharing ratio.
In this whole process, the partnership firm comes to an an however firm continues to exist under new partnership deed. It is also called reconstitution of the partnership firm.
Anurag Pathak Changed status to publish July 3, 2023
