Question

Assertion (A): In a partnership firm, at the time of admission, the new partner brings in an agreed amount of capital either in cash or in kind.
Reason (R): In a partnership firm, at the time of admission, the new partner acquires the right to share the assets and the profits of the partnership firm.
Choose the correct option from the following:

• A. Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
• B. Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
• C. Assertion (A) is incorrect, but Reason (R) is correct.
• D. Assertion (A) is correct, but Reason (R) is incorrect.

Hint:

When evaluating assertion-reason questions, check if the reason logically and correctly explains the assertion. Both must be independently true.

Answer 1

The Correct Option is A

Assertion (A) correctly states that a new partner contributes capital in cash or kind at the time of admission. Reason (R) also correctly explains that this contribution allows the new partner to acquire a share in the partnership's assets and profits. Since Reason (R) provides a valid explanation for Assertion (A), the correct answer is \( (A) \).