Assertion (A): Ajeet and Akash are partners sharing profits in the ratio of 3 : 2. They admit Prakash as a new partner for 1/4th share. Goodwill is valued at ₹ 1,00,000 and the new Partner will compensate both Ajeet and Akash by crediting ₹ 25,000 in the ratio of 3 : 2.
Assertion (A): Ajeet and Akash are partners sharing profits in the ratio of 3 : 2. They admit Prakash as a new partner for 1/4th share. Goodwill is valued at ₹ 1,00,000 and the new Partner will compensate both Ajeet and Akash by crediting ₹ 25,000 in the ratio of 3 : 2.
Reason (R): Prakash has taken 1/4th share in profits and therefore he will bring 1/4th of Goodwill, i.e., ₹ 25,000. Since Sacrificing Ratio or the new profit sharing ratio is not given, Ajeet and Akash have sacrificed in the ratio of 3 : 2. Therefore, they will be compensated in the ratio of 3 : 2.
In the context of the above two statements, which of the following is correct?
(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 not correct.
Anurag Pathak Changed status to publish June 8, 2023
Ans – b)
Explanation:-
In the absence of any further information sacrificing ratio is always equal to old ratio. the prakash would bring 1/4th of ₹ 1,00,000 as premium of goodwill. It would be credited to sacrificing partners, Ajeet and Akash in their sacrificing ratio.
Anurag Pathak Changed status to publish June 8, 2023
