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Assertion (A): Accumulated profits appearing in the balance sheet on date of change in profit sharing ratio is to be distributed among existing partners in their old ratio. Reason (R): Accumulated profits had been owned before the reconstitution of the firm by the partners a. Both A and R are correct b. Both A and R are incorrect c. A is true but R is not correct explanation of A d. A is incorrect but R is correct |
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Answer» a. Both A and R are correct |
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