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ASSERTION (A): The treatment of revaluation of assets and reassessment of liabilities is done in the same manner as done in case of change in profit sharing ratio. REASON (R): Revaluation of assets and liabilities is only done when new partner is admitted. (a) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A) (b) Both Assertion (A) and the reason (R) are true, but the 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 |
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Answer» (a) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A) |
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