Question

Assertion (A): Change in the profit sharing ratio among the existing partners results in a change in their existing agreement.

Reason (R): Change in the profit sharing ratio among the existing partners results in a gain of additional share in future profits for some partners while a loss of a part thereof, for other partners.

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

Options

• Both (A) and (R) are correct.

• (A) is correct, but (R) is incorrect.

• Only (R) is correct.

• Both (A) and (R) are incorrect.

Answer 1

Both (A) and (R) are correct.