Practice question
Question
There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below
Assertion (A): In certain cases, the premium for goodwill paid by the incoming partner is not recorded in the books of accounts.
Reason (R): Sometimes, the incoming partner pays his share of goodwill privately to the sacrificing partners, outside the business.
Explanation
Both Assertion (A) and Reason (R) partnership correct; deed provisions interest capital drawings as per Act.
Discussion
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