Question : Assertion (A): Dissolution of the firm means the dissolution of the partnership between all the partners of the firm.

Reason (R): Dissolution of the firm means the closure of business and therefore means dissolution of partnership also.

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

Question : Assertion (A): Dissolution of Partnership results in no change in the economic relationship.
Reason (R): Dissolution of Partnership firm results in the ending of the economic relationship.

Option 1: Both Assertion (A) and Reason (R) are true and (A) is correct explanation of Reason (R).

Option 2: Both Assertion (A) and Reason (R) are true but (A) is not correct explanation of Reason (R).

Option 3: Assertion (A) is true but Reason (R) is false.

Option 4: Reason (R) is true but Assertion (A) is false.

Question : Assertion (A): Although not specifically mentioned in the definition, the partnership's business should be legal.

Reason (R): Any illegal activity is prohibited in the country. As a result, the business must also be legal to operate.

Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

Option 3: Assertion (A) is true but Reason (R) is False

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

Question : Assertion (A): Dissolution of Partnership may or may not result into closing down of the business.
Reason (R): Dissolution of Partnership firm means close down of business and comes to an end.

Option 1: Both Assertion (A) and Reason (R) are true and (A) is correct explanation of Reason (R).

Option 2: Both Assertion (A) and Reason (R) are true but (A) is not correct explanation of Reason (R).

Option 3: Assertion (A) is true but Reason (R) is false.

Option 4: Reason (R) is true but Assertion (A) is false.

Question : Assertion (A): A profit and loss appropriation account is prepared to show how profits are distributed among partners in accordance with the Partnership Deed.

Reason (R): Only the working partner(s) have access to the books of accounts.

Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

Option 3: Assertion (A) is true but Reason (R) is False

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