Assertion Reason MCQs of Admission of Partner Class 12
Looking for Assertion Reason Based MCQs with answers of Admission of partner chapter of Accountancy Class 12 CBSE, ISC and other state Board.
We have compiled very important assertion reason-based Multiple Choice Questions of chapter 4 Admission of partner of volume 1 of Accountancy Class 12
Assertion Reason based Multiple Choice Questions of Admission of partner class 12
Let’s Practice
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Anahat and Parminder are partners sharing profits in the ratio of 2:1. They admit Rubayat as partner w.e.f. 1st January 2021. On that date, Goodwill existed in the books at ₹1,00,000. Goodwill of ₹50,000 was written off by debiting capital accounts of Anahat and Parminder in the ratio of 2:1. While balance goodwill was carried forward in the Balance Sheet.
Reason (R): Goodwill existing in the books is purchased goodwill and therefore, is not written off.
Alternatives:
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 and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Both Assertion (A) and Reason (R) are False.
And – d)
Explanation:- ₹1,00,000 goodwill must be written off from the books completely not partially. Thus both Assertion and Reason are false.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Undistributed profits or losses appearing in the balance sheet at the time of admission should be transferred to the old partner’s capital/current account.
Reason (R): Undistributed profits or losses appearing in the balance sheet at the time of admission belong to the old partners as they are earned by them.
Alternatives:
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 and 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.
Ans – a)
Explanation:- Undistributed Profits and losses in the balance sheet belongs to the old partners.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Admission of a partner means reconstitution of the partnership whereby an old partnership ceases to exist and a new partnership comes into existence.
Reason (R): When a partner is admitted the number of partners increases and also the profit-sharing ratio changes. However, the firm continues. Thus, it is a reconstitution of partnership.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Dev and Anil are partners sharing profits in the ratio of 3:2. They admit Ramesh into a partnership for 1/4th share on 1st April 2020. On that date, Deferred Revenue Expenditure existed in the books at ₹1,00,000. They carried it in the books of the firm because the expenditure will give benefit for the next five years.
Reason (R): Deferred Revenue Expenditure is written off on the reconstitution of the firm and is not carried forward.
Alternatives:
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 and 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.
And – d)
Explanation:- All fictitious assets, accumulated profits and losses are written off at the time of reconstitution of the partnership in the absence of any other information.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The amount of goodwill brought in by the new partner is divided between the existing partners in their sacrificing ratio.
Reason (R): The new partner acquires his/her share profit from the existing partners.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Atul and Bhushan are partners sharing profits equally. They admit Bharat into partnership w.e.f 1st April 2021 for 1/5th share in profits. On that date, a debit balance in the Profit and Loss Account existed at ₹50,000. It will be written off to the capital accounts of Atul and Bhushan equally.
Reason (R): Debit balance in Profit and Loss Account is a fictitious asset and all fictitious assets are written off at the time of reconstitution of the firm to the capital accounts of old partners in the old profit sharing ratio.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Admission of a partner leads to the dissolution of the old firm and bringing the new firm into existence.
Reason (R): As a result of admission of a partner, old partners along with the new partner constitute the new firm. Thus, old firms are dissolved and new firm comes into existence.
Alternatives:
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 and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Both Assertion (A) and Reson are False.
Ans – d)
Explanationa:- As a result of admissionof a partner, only partnership agreement is dissolved not the firm.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): An increase in the value of assets and a decrease in the value of the liability at the time of admission of a partner is debited to the Revaluation Account.
Reason (R): Revaluation Account is nominal in nature.
Alternatives:
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 and 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.
Ans – d)
Explanation:- Increase in value of assets and decrease in value of liabilities are credited to Revaluation A/c. Thus Assertion is false. The Revaluation Account is a nominal account. Thus reason is true.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Preet and Shirin are equal partners. They admit Maira as a partner for 1/4th share in profits. Land of book value ₹3,00,000 is increased by ₹2,00,000 and computers of ₹2,00,000 were reduced to ₹1,00,000. The new value of land will be ₹5,00,000 and computers ₹1,00,000.
Reason (R): The expression ‘increased by’ means that much value is to be added to the book value of the asset. Therefore, the value of land will be ₹5,00,000. The expression ‘reduced’ means that it is the new value of the asset. Therefore, computers will be shown at ₹1,00,000.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Admission of a partner leads to a situation where one or more partners forego their profit share in favour of the new partner.
Reason (R): New partners can be given additional profit shares while profit shares of old partners are not changed.
Alternatives:
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 and 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.
Ans – c)
Explanation:- When new partner admit into a firm. old paratners share is alwayws reduced.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Zubin and Zeenat are equal partners. They admit Ruksana into a partnership for 1/3rd share in profits. Reassessing the liabilities, it was found that sundry creditors of ₹1,00,000 are not payable and also there was an unrecorded liability of customer claims of ₹1,00,000, which is to be recorded. As a result of these adjustments, the loss on revaluation will be nil.
Reason (R): Sundry Creditors are reduced by ₹1,00,000 and a new liability of the same amount towards Customer Claims has arisen. As a result, there is neither gain (profit) nor loss on this account.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): It is necessary to show the true position of the firm at the time of admission of a new partner.
Reason (R): The gain or loss on revaluation which is transferred to all the partner’s capital account in the new profit sharing ratio.
Alternatives:
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 and 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.
Ans – c)
Explanation:- The gain or loss on revaluation is distributed among old partners in their old profit sharing ratio.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): At the time of admission of a partner, the value of goodwill of the firm is determined because the new partner compensates the sacrificing partner or partners
Reason (R): Goodwill of the firm is valued at the time of admission of a partner because the new partner is the gaining Partner and he will compensate the Sacrificing Partner or Partners
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Workmen Compensation Reserve is a reserve created out of a firm’s profits to meet possible liability to pay compensation to employees if it arises.
Reason (R): Excess of workmen compensation Reserve over the Workmen Compensation claim is credited to all partners in their old profits sharing ratio.
Alternatives:
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 and 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.
Ans – b)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): At the time of admission of a partner, the new partner should bring his share in goodwill in cash to compensate the sacrificing partner.
Reason (R): New partner may or may not bring his share of goodwill in cash to compensate the Sacrificing Partner or Partners. Sacrificing Partners may be compensated by debiting new partner’s Current Account and crediting Sacrificing Partner’s Capital Accounts.
Alternatives:
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 and 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.
Ans – d)
Explanation:- It is not necessary to bring Premium of goodwill in cash, it can also be brought in kind apart from cash. and if not brought in cash, new partners current account can also be debited.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): A partner can admit a new partner to the firm.
Reason (R): A new partner can be admitted only when the existing partners unanimously agree to it.
Alternatives:
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 and 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.
Ans – d)
Explanation:- To admit a new partner, all partner consent is needed
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Ajeet and Akash are partners sharing profits in the ratio of 3:2. They admit Prakash as a new partner for 1/4th share. Goodwill is valued at ₹1,00,000 and the new partner will compensate both Ajeet and Akash by crediting ₹25,000 in the ratio of 3:2.
Reason (R): Prakash has taken 1/4th share in profits and therefore he will bring 1/4th Goodwill, i.e., ₹25,000. Since, sacrificing Ratio or the new profit sharing ratio is not given, Ajeet and Akash have sacrificed in the ratio of 3:2. Therefore, they will be compensated in the ratio of 3:2.
Alternatives:
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 and 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.
Ans – a)
Explanation:- In the absence of further information, sacrificing ratio is always equal to old ratio.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): A new partner may be admitted to supplement its existing resources.
Reason (R): When the firm requires additional capital or managerial help or both for the expansion of its business, a new partner is admitted.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): General Reserve is not distributed among the old partners but is carried forward in the Balance Sheet prepared after admission of a partner.
Reason (R): General Reserve is set aside out of past profits and therefore, it is distributed among old partners in their old profit sharing ratio.
Alternatives:
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 and 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.
Ans – d)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The new partner brings in a premium for goodwill.
Reason (R): The new partner is required to compensate the old partner’s for their loss of share in the profits of the firm.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Ajay and Akansha are partners sharing profits in the ratio of 3:2. General Reserve existed in the books at ₹1,00,000. They admitted Amit as a partner for 2/5th share in profits. ₹50,000 was transferred to Workmen Compensation Reserve and the balance was transferred to Capital Accounts of Ajay and Akansha in the ratio of 3:2.
Reason (R): General Reserve is a free reserve and can be used for any purposes as is decided by the partners. The partners may transfer ₹50,000 to Workmen Compensation Reserve and transfer the balance of ₹50,000 to the Capital Accounts of Ajay and Akansha in the ratio of 3:2.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Purchased goodwill may be accounted for in the books and shown as a liability.
Reason (R): Intangible assets should be recognized by fulfilling the criteria as recognized under AS – 26.
Alternatives:
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 and 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.
Ans – d)
Explanation:- Purchased goodwill is shown as assets as per the AS – 26.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Bhaskar, Suman, and Sumit are partners sharing profits equally. They admitted Sahil for 2/10th share and the new profit sharing ratio is 3:3:2. Workmen Compensation Reserve existed in the books at ₹2,00,000 and a claim by workers of ₹40,000 also existed. It was decided to provide for the claim. ₹1,60,000, the balance of Workmen’s Compensation Reserve will be transferred to the Capital Accounts of Bhaskar, Suman, and Sumit equally.
Reason (R): Workmen Compensation Reserve to the extent of ₹1,60,000 is a free reserve and is transferred to the Partner’s Capital Accounts in their old profit sharing ratio, it being a reserve set aside from past profits.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The new partner is entitled to have any share in accumulated profits of the firm appearing in the books at the time of his admission.
Reason (R): The gain or loss on revaluation of each asset and liability is transferred to the capital accounts of the old partners in their old profits sharing ratio.
Alternatives:
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 and 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.
Ans – d)
Explanation:- Accumulating profits belongs to old partners in their old profit sharing ratio. Revaluation profit and loss is distributed among old partners.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Parul and Paresh are partners sharing profits equally. They admit Prerna for 1/4th share in future profits. On the date of admission, Workmen Compensation Reserve existed in the books at ₹1,00,000. A claim of ₹1,50,000 was made by a worker and was to be accounted for. The existing reserve of ₹1,00,000 will be distributed between Parul and Paresh and ₹1,50,000 being the claim account will be transferred to the debit of the Revaluation Account.
Reason (R): Workmen Compensation Reserve of ₹1,00,000 will be transferred to workmen’s Compensation Claim Account. In addition, ₹50,000 be debited to Revaluation Account and credited Workmen’s Compensation Claim Account.
Alternatives:
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 and 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.
Ans – d)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The new partner after his admission is entitled to share the future profits of the firm.
Reason (R): The new partner acquires his share in profits in the firm from the old partners
Alternatives:
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 and 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.
Ans – b)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Karan and Raman are equal partners. They admitted Param as a partner and their new profit sharing ratio was 2:2:1. The sacrificing ratio of Karan and Raman is 1:1
Reason (R): A change in the values of assets and liabilities is credited/debited to the Revaluation Account.
Alternatives:
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 and 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.
Ans – b)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Jass and Reet are equal partners. They admit Harry as a partner for 1/6th share in future profits. Their profit sharing ratio after the admission of Harry is 3:2:1. As a result of this, the profit share of Reet has not changed.
Reason (R): The profit share of Jass before and after the admission of Harry has not changed. Before admission of Harry, his profit share was 1/2 and after admission also it is 3/6 or 1/2.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): In certain cases, the premium for goodwill paid by the incoming partner is not recorded in the books of accounts.
Reason (R): Sometimes, the income partner pays his share of goodwill privately to the sacrificing partners, outside the business.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Gurman and Ravi are equal partners. They admitted Param as a partner and their new profit sharing ratio was 2:2:1. They revalued the assets and reassessed their liabilities. They did so because the new partner should not be at an advantage or disadvantage.
Reason (R): Assets and Liabilities that exist before admission of Param are revalued/reassessed because of an increase in value of assets and a decrease in value of liabilities and vice-versa is for the period before admission of Param. If the change in values is accounted for, Param will be at an advantage or disadvantage.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Ashish and Deepak were partners sharing profits and losses equally. They admit Vinod as a partner for 1/5th share. Goodwill was valued at ₹1,00,000. Ashish and Deepak will be compensated by Vinod paying goodwill of ₹10,000 each.
Reason (R): Both Ashish and Deepak have sacrificed equally. Sinch Vinod has taken 1/5th share from Ashish and Deepak in equal proportion, i.e., 1/10th share each, he will compensate each by paying goodwill of ₹10,000 being equal to 1/10th of ₹1,00,000.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): If the amount of any liability is understated, then the revaluation account will be debited to restore the liability’s amount to its actual value.
Reason (R): Increase in the amount of liability is a profit for the firm.
Alternatives:
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 and 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.
Ans – c)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Hari and Nimrat are equal partners. They admit Kabir as a partner for 1/4th share. The value of assets was increased by ₹1,00,000 and an unrecorded liability of ₹40,000 was brought into books. The gain (profit) of ₹60,000 will be credited in the capital accounts of Hari and Nimrat equally.
Reason (R): Gain (profit) or loss on revaluation of assets and reassessment of liabilities is credited or debited to the capital accounts of old partners in their old profit sharing ratio.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): It is necessary to ascertain the new profit sharing ratio for old partners when a new partner is admitted.
Reason (R): New partner acquires his share from old partners which reduce old partner’s share in profits.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Admission of partner does not mean the dissolution of the firm but the dissolution of old partnership and new partnership coming into existence.
Reason (R): Admission of a partner means reconstitution of the partnership whereby the firm continues
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Accrued income not recorded is shown in the credit of the Revaluation Account on the admission of a partner.
Reason (R): It, being, an income that is related to the period before admission of a partner. Thus, it is credited to Revaluation Account and net gain (profit) or loss of the Revaluation Account is transferred to the old partner’s capital accounts in their old profit sharing ratio.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): On admission of a partner, it is important to determine sacrificing and Gaining Ratios because sacrificing partner or partners are compensated by paying goodwill on the basis of the sacrificing ratio by the Gaining partners
Reason (R): Sacrificing partners are compensated by the Gaining Partners for the sacrifice made by each partner in their gaining ratio.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Raj and Hasmukh are partners in a firm sharing profits and losses in the ratio of 2:1. They admit Garima as partner for 1/6th share. Thus, the new profit sharing ratio is 10:5:3.
Reason (R): Profit share sacrificed by Raj is 2/18 (1/6 × 2/3). Thus, his new profit share is 10/18 (2/3 – 2/18). Profit share sacrificed by Hasmuskh is 1/18 (1/6 × 1/3). Thus, his new profit share is 5/18 (1/3 – 1/18). New profit sharing ratio is 10:5:3.
Alternatives:
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 and 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.
Ans – a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Aditya and Shiv were partners in a firm with capitals of ₹3,00,000 and ₹2,00,000, respectively. Naina was admitted as a new partner for 1/4th share in the profits of the firm. Naina brought ₹1,20,000 for her share of goodwill premium and ₹2,40,000 for her capital. The amount of goodwill premium credited to Aditya will be ₹60,000.
Reason (R): Profit shares sacrificed by Aditya and Shiv are 1/8th each as their profit sharing ratio was equal. Goodwill Premium brought by Naina is ₹1,20,000 which will be shared by Aditya and Shiv equally.
Alternatives:
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 and 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.
Ans – a)
