Assertion (A): Admission of a partner leads to dissolution of old firm and bringing new firm into existence.
Assertion (A): Admission of a partner leads to dissolution of old firm and bringing new firm into existence.
Reason (R): As a result of admission of a partner, old partners along with the new partner constitute the new firm. Thus, old firm is dissolved and new firm comes into existence.
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) Only Assertion (A) is correct.
(d) Both Assertion (A) and Reason (R) are incorrect.
Anurag Pathak Changed status to publish June 8, 2023
Ans – d)
Explanation:-
Admission of a partner does not lead to the dissolution of an old firm. it just ends the old partnership and a new partnership is formed and the firm continues. Thus Assertion is incorrect.
Old and new partners do not dissolve the old firm and a new firm is not formed. the admission of the partner just leads to the end of the old partnership and a new partnership is formed and the firm remains to continue. thus reason (R) is also incorrect.
Anurag Pathak Changed status to publish June 1, 2023
