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Assertion: The new profit sharing ratio includes the new partner. Reason: After admission the new partner is entitled to share future profits. Choose the correct option.

Answer and explanation

Correct answer: Both assertion and reason are true and the reason is the correct explanation

After admission the new partner shares future profits. Therefore the new profit sharing ratio includes all partners.

Related tags

Assertion ReasonConceptNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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