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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): The gaining partner transfers the amount of goodwill to the sacrificing partners in proportion.
Reason (R): The gaining ratio is the share of profit gained by a partner when there is a change in the 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): The gaining partner transfers the amount of goodwill to the sacrificing partners in proportion.
Reason (R): The gaining ratio is the share of profit gained by a partner when there is a change in the profit sharing ratio.
The correct answer is option 'B' - Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Explanation:
In a partnership firm, when there is a change in the profit sharing ratio, it affects the value of goodwill. Goodwill is the value of the reputation and customer base of the firm, and it is an intangible asset.
When there is a change in the profit sharing ratio, the gaining partner is essentially buying a portion of the sacrificing partners' share in the firm. The gaining partner is paying for this by transferring the amount of goodwill to the sacrificing partners. The amount of goodwill transferred is in proportion to the sacrificing partners' share.
The gaining ratio is the new ratio in which the partners share the profits after the change in the profit sharing ratio. It represents the share of profit gained by a partner. However, the gaining ratio itself does not determine the transfer of goodwill. The transfer of goodwill is based on the proportional share of the sacrificing partners in the firm.
Therefore, while both the assertion and reason are true, the reason does not correctly explain the assertion. The reason only explains the concept of gaining ratio and its relation to the change in profit sharing, but it does not explain why the gaining partner transfers the amount of goodwill to the sacrificing partners in proportion.
Hence, the correct answer is option 'B' - Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Reason (R): The gaining ratio is the share of profit gained by a partner when there is a change in the profit sharing ratio.
The correct answer is option 'B' - Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Explanation:
In a partnership firm, when there is a change in the profit sharing ratio, it affects the value of goodwill. Goodwill is the value of the reputation and customer base of the firm, and it is an intangible asset.
When there is a change in the profit sharing ratio, the gaining partner is essentially buying a portion of the sacrificing partners' share in the firm. The gaining partner is paying for this by transferring the amount of goodwill to the sacrificing partners. The amount of goodwill transferred is in proportion to the sacrificing partners' share.
The gaining ratio is the new ratio in which the partners share the profits after the change in the profit sharing ratio. It represents the share of profit gained by a partner. However, the gaining ratio itself does not determine the transfer of goodwill. The transfer of goodwill is based on the proportional share of the sacrificing partners in the firm.
Therefore, while both the assertion and reason are true, the reason does not correctly explain the assertion. The reason only explains the concept of gaining ratio and its relation to the change in profit sharing, but it does not explain why the gaining partner transfers the amount of goodwill to the sacrificing partners in proportion.
Hence, the correct answer is option 'B' - Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
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Directions : In the following questions, a statement of Assertion (A)...
The gaining partner transfers the amount of goodwill to the sacrificing partners in proportion in order to compensate for the sacrificed goodwill as per the gaining ratio.
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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): The gaining partner transfers the amount of goodwill to the sacrificing partners in proportion.Reason (R): The gaining ratio is the share of profit gained by a partner when there is a change in the 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): The gaining partner transfers the amount of goodwill to the sacrificing partners in proportion.Reason (R): The gaining ratio is the share of profit gained by a partner when there is a change in the 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): The gaining partner transfers the amount of goodwill to the sacrificing partners in proportion.Reason (R): The gaining ratio is the share of profit gained by a partner when there is a change in the 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): The gaining partner transfers the amount of goodwill to the sacrificing partners in proportion.Reason (R): The gaining ratio is the share of profit gained by a partner when there is a change in the 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): The gaining partner transfers the amount of goodwill to the sacrificing partners in proportion.Reason (R): The gaining ratio is the share of profit gained by a partner when there is a change in the 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): The gaining partner transfers the amount of goodwill to the sacrificing partners in proportion.Reason (R): The gaining ratio is the share of profit gained by a partner when there is a change in the 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): The gaining partner transfers the amount of goodwill to the sacrificing partners in proportion.Reason (R): The gaining ratio is the share of profit gained by a partner when there is a change in the 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): The gaining partner transfers the amount of goodwill to the sacrificing partners in proportion.Reason (R): The gaining ratio is the share of profit gained by a partner when there is a change in the 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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