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Assertion: The new profit sharing ratio always includes all partners. Reason: After admission the new partner shares future profits. Choose the correct option.

Answer and explanation

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

Both statements are correct. After admission future profits are shared by all old and new partners.

Related tags

Assertion ReasonConceptNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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