Assertion Reason MCQs of Change in profit sharing ratio class 12 Accountancy
Looking for Assertion Reason MCQs of Change in Profit Sharing Ratio chapter of Accountancy with answers and solutions of class 12 CBSE, ISC and State Board
Assertion Reason (Multiple Choice Questions) with answers of Change in Profit Sharing Ratio chapter of class 12 Accountancy
Let’s Practice
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): A change in profit sharing ratio results to the dissolution of the partnership firm.
Reason (R): Existing agreement comes to an end and a new agreement 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) 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): It is important to compute sacrificing and gaining ratio and the time of change in the profit-sharing ratio.
Reason (R): Sacrificing partner compensates the gaining partner by paying him a proportion amount of goodwill.
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:- Gaining partner compensates to the sacrificing partner proportion amount of goodwill.
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): At the time of reconstitution of the firm, assets are revalued and liabilities are reassessed.
Reason (R): The change in the value of assets and liabilities belongs to the period prior to reconstitution and any gain or loss on revaluation is shared in the old ratio by the 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): When reserves and accumulated profits/losses are adjusted through capital accounts, they appear in the balance sheet of the new firm at the old figures.
Reason (R): If partners decide to record the net effect of reserves, etc, a single adjusting entry involving the capital accounts of sacrificing and gaining partners is passed.
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)
