Directions: Each of the following questions consists of two statements, one is Assertion (A) and the other is Reason (R). Give answer: |
Assertion (A): It is necessary to adjust goodwill at the time of change in profit sharing ratio. |
Reason (R): At the time of change in profit sharing ratio, gaining partner compensate sacrificing partner by paying him goodwill. |
A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
B) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A).
C) Assertion (A) is true but Reason (R) is false.
D) Assertion (A) is false but Reason (R) is true.
Correct Answer: A
Solution :
[a]You need to login to perform this action.
You will be redirected in
3 sec