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Assertion (A): The revaluation account is prepared for the purpose of transferring the profit or loss arising out of increase or decrease in the book value of assets or liabilities of the partnership at the time of admission of a new partner. Reason (R): At the time of admission of a new partner, it is always desirable to ascertain whether the assets of a firm are shown in books at their current values. In case the assets are overstated or understated, these are revaluated.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» d) Assertion (A) is false and Reason (R) is true. |
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