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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.
Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.
- 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, but 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.
Correct answer is option 'B'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A)...
Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.
Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/current accounts in the old profit sharing ratio.
The correct answer is option 'B'. Let's understand why.
Explanation:
When there is a revaluation of assets and reassessment of liabilities in a partnership firm, it is necessary to adjust the capital accounts of the partners to reflect the changes in the value of the assets and liabilities. The profit or loss on revaluation is distributed among the partners in their old profit sharing ratio. This is done by transferring the amount to the old partners' capital/current accounts.
Assertion (A) is true: Profit or loss on revaluation of assets and reassessment of liabilities is indeed transferred to the old partners' capital/current accounts in the old profit sharing ratio. This is done to adjust the capital accounts and reflect the changes in the value of the assets and liabilities.
Reason (R) is true: All the accumulated profit or loss and reserves are transferred to the old partners' capital/current accounts in the old profit sharing ratio. This is done to ensure that the partners' capital accounts are adjusted properly and reflect the true financial position of the partnership firm.
Reason (R) is not the correct explanation of Assertion (A): While Reason (R) is true, it does not provide a direct explanation for Assertion (A). Reason (R) talks about the transfer of accumulated profit or loss and reserves, while Assertion (A) specifically refers to the transfer of profit or loss on revaluation of assets and reassessment of liabilities. Therefore, Reason (R) cannot be considered as the correct explanation of Assertion (A).
In conclusion, both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/current accounts in the old profit sharing ratio.
The correct answer is option 'B'. Let's understand why.
Explanation:
When there is a revaluation of assets and reassessment of liabilities in a partnership firm, it is necessary to adjust the capital accounts of the partners to reflect the changes in the value of the assets and liabilities. The profit or loss on revaluation is distributed among the partners in their old profit sharing ratio. This is done by transferring the amount to the old partners' capital/current accounts.
Assertion (A) is true: Profit or loss on revaluation of assets and reassessment of liabilities is indeed transferred to the old partners' capital/current accounts in the old profit sharing ratio. This is done to adjust the capital accounts and reflect the changes in the value of the assets and liabilities.
Reason (R) is true: All the accumulated profit or loss and reserves are transferred to the old partners' capital/current accounts in the old profit sharing ratio. This is done to ensure that the partners' capital accounts are adjusted properly and reflect the true financial position of the partnership firm.
Reason (R) is not the correct explanation of Assertion (A): While Reason (R) is true, it does not provide a direct explanation for Assertion (A). Reason (R) talks about the transfer of accumulated profit or loss and reserves, while Assertion (A) specifically refers to the transfer of profit or loss on revaluation of assets and reassessment of liabilities. Therefore, Reason (R) cannot be considered as the correct explanation of Assertion (A).
In conclusion, both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
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Community Answer
Directions : In the following questions, a statement of Assertion (A)...
Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio, as it is a
result of the under or over valuation of the old partners but it is not an accumulated profit.
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.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, but 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.Correct answer is option 'B'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.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, but 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.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.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, but 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.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.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, but 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.Correct answer is option 'B'. Can you explain this answer?.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.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, but 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.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.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, but 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.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.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, but 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.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.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, but 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.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Here you can find the meaning of Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.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, but 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.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.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, but 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.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.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, but 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.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.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, but 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.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old partners' capital/current accounts in old profit sharing ratio.Reason (R): All the accumulated profit or loss and reserves are transferred to the old partners' capital/ current accounts in the old profit sharing ratio.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, but 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.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
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