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Assertion (A): A minor cannot be admitted in a firm as a partner. Reason (R): A minor can participate in the profits of a firm. - Accounts

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Question

Assertion (A): A minor cannot be admitted in a firm as a partner.

Reason (R): A minor can participate in the profits of a firm.

In the context of the above two statements, which of the following is correct?

Options

  • Assertion (A) is correct, but Reason (R) is wrong.

  • Both Assertion (A) and Reason (R) are correct.

  • Assertion (A) is wrong, but Reason (R) is correct.

  • Both Assertion (A) and Reason (R) are wrong.

MCQ
Assertion and Reasoning
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Solution

Both Assertion (A) and Reason (R) are correct.

Explanation:

A minor cannot be a full partner in a firm but can be admitted to its benefits, meaning they can receive a share in the profits. So, both the assertion and reason are correct, and the reason supports the assertion.

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Chapter 1: Accounting for Partnership Firms - Fundamentals - OBJECTIVE TYPE QUESTIONS [Page 1.203]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 1 Accounting for Partnership Firms - Fundamentals
OBJECTIVE TYPE QUESTIONS | Q 5. | Page 1.203
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