Question : Assertion A:-  A and Z are partners sharing profit in the ratio of 3:2. They agree to new terms of the partnership, and both the partners will get interested in capital and also remuneration, goodwill will be valued and gaining partners will compensate the sacrificing partners.

Reason R:- The profit-sharing ratio of  A and Z has not changed. Hence, there is neither a gaining partner nor a sacrificing partner. Therefore, goodwill need not be valued.

In the context of the above two statements, which of the following is correct?

 

Option 1: Assertion A and Reason R are correct but the reason R is not the correct explanation of Assertion A

Option 2: Both Assertion A and Reason R are correct and Reason R is the correct explanation of Asseration A 

Option 3: Only Assertion A is correct

Option 4: Assertion A is not correct but the Reason R is correct.

Question : Assertion A:- N, M and O are partners sharing profits in the ratio of 2:2:1. They changed their profit-sharing ratio to 3:2:1 on that date, and goodwill existed in the books at Rs 50,000. It will be written off in the ratio of 2:2:1.

Reason R:- Goodwill existing in the books is purchased goodwill and is written off among the partners in the old profit-sharing ratio when the firm is reconstituted.

Option 1: Assertion A and Reason R are correct but the reason R is not the correct explanation of Assertion A

Option 2: Both Assertion A and Reason R are correct and Reason R is the correct explanation of Assertion A 

Option 3: Only Assertion A is correct 

Option 4: Assertion A is not correct but Reason R is correct

Question : Assertion A:- In the books of Suhni, Reema and Chandni, advertisement suspense existed at Rs 1,80,000. The profit-sharing ratio was changed from equal sharing to 5:3:2. Rs 1,80,000 will be written off equally at the time of change in the profit-sharing ratio.

Reason R:- Advertisement suspense is written off in the old profit-sharing ratio when the profit-sharing ratio changes. 

Option 1: Assertion A and Reason R are correct but Reason R is not the correct explanation of Assertion A

 

Option 2: Both Assertion A and Reason R are correct and Reason R is the correct explanation of Assertion A 
 

Option 3: Only Assertion A is correct 
 

Option 4: Assertion A is not correct but the Reason R is correct

Question : Assertions A:-   Valuation of goodwill is necessary at the time of the firm’s reconstitution because gaining partners have to complete the sacrifice partners to gain profit share. 

Reason R:-  Goodwill is an intangible asset which recognized in the books of account if an amount is paid for it.

In the context of the above statement, which of the following is correct?

Option 1: Assertion A and Reason R are correct but the reason R is not the correct explanation of Assertion A.

Option 2: Both Assertion A and Reason R are correct and Reason R is correct explanation of Assertions A.

Option 3: Assertion A is correct but the reason R is not correct.

Option 4: Both Assertion A and reason R are incorrect.

Question : Assertion (A): A loan from a relative of a partner is an external liability.

Reason (R): It is not transferred to the Realisation Account.

Option 1: Assertion (A) and Reason (R) are correct but the reason (R) is not the correct explanation of Assertion (A)

Option 2: Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Option 3: Assertion (A) is correct but the Reason (R) is not correct.

Option 4: Both Assertion (A) and Reason (R) are not correct.

Question : Assertion (A): The partner’s Private Property can be applied to pay the firm’s debt.

Reason (R): In a partnership firm, partners have unlimited liability.

Option 1: Assertion (A) and Reason (R) are correct but the reason (R) is not the correct explanation of Assertion (A)

Option 2: Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Option 3: Only Assertion (A) is correct.

Option 4: Assertion (A) is not correct but the Reason (R) is correct.