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): 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): A partnership firm does not exist as a separate legal entity apart from the partners who comprise it.

Reason (R): The Central Government has established a limit of 100 partners in a firm.

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 : 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): Balance at Banks is transferred to Realisation Account.

Reason (R): Balance at Bank is not to be realised but instead distributed in its present form.

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.