Assertion (A): Change in the profit sharing ratio among the existing partners results in a change in their existing agreement.
Assertion (A): Change in the profit sharing ratio among the existing partners results in a change in their existing agreement.
Reason (R): Change in the profit sharing ratio among the existing partners results in a gain of additional share in future profits for some partners while a loss of a part thereof for other partners.
In the context of the above two statements, which of the following is correct?
(a) Assertion (A) is correct but Reason (R) is wrong.
(b) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
(c) Both Assertion (A) and Reason (R) are incorrect
(d) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A).
Anurag Pathak Changed status to publish May 7, 2023
Ans – d)
the existing agreement changes as it results in a gain of additional share in future profits for some partners while a loss of a part thereof for other partners. Both Assertion and Reason are correct and reason are is the correct explanation.
Anurag Pathak Changed status to publish May 7, 2023
