Assertion (A): Change in Profit sharing ratio means one or more partners have forgone their profit share in favour of one or more partners.
Assertion (A): Change in Profit sharing ratio means one or more partners have forgone their profit share in favour of one or more partners.
Reason (R): Change in profit sharing ratio brings a change in profit sharing ratio among the partners. Thus, profit share of one or more partners reduces while profit share of one or more partners increases.
in the context of 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 incorrect.
Anurag Pathak Changed status to publish May 5, 2023
Ans – b)
Explanation:- When profit sharing ratio changes one or more partners gain and other sacrifices their share. Thus both Assertion and Reason are correct.
Anurag Pathak Changed status to publish May 5, 2023
