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Assertion (A) : At the time of admission of a new partner he is required to bring premium or goodwill. Reason (R) : Due to admission of a new partner , the existing partner’s sacrifice their share of profits in favour of new partner. So, he has to compensate the existing partners for loss of their share in super profits of the firm. a) Both Assertion (A) and Reason (R) are true. b) Both Assertion (A) and Reason (R) are false. c) Assertion (A) is true and Reason (R) is false. d) Assertion (A) is false and Reason (R) is true. |
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Answer» c) Assertion (A) is true and Reason (R) is false. |
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