Assertion (A): At the time of admission of a partner, new partner should bring his share in goodwill in cash to compensate the Sacrificing Partner.
Assertion (A): At the time of admission of a partner, new partner should bring his share in goodwill in cash to compensate the Sacrificing Partner.
Reason (R): New partner may or may not bring his share of goodwill in cash to compensate the sacrificing Partner or partners. Sacrificing partners may be compensated by debiting new partner’s Current Account and crediting Sacrificing partner’s Capital Accounts.
In the context of above two statements, which of the following is correct?
(a) Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
(b) Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is correct but the Reason (R) is not correct
(d) Assertion (A) is not correct but the Reason (R) is correct.
Anurag Pathak Changed status to publish June 8, 2023
Ans – d)Â
Explanation:- New partner may or may bring his share in goodwill in cash. if he does not bring cash, he can compensate through current account too.
thus Assertion is incorrect and Reason (R) is correct.
Anurag Pathak Changed status to publish June 1, 2023
