Question

Assertion (A): In the event of retirement of a partner, the combined share of profit of the remaining partners will increase.

Reason (R): Combined share of profit of the remaining partners increases because they will also acquire the profit share of the retiring partner.

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

Options

• Both (A) and (R) are true, but (R) is not the correct explanation of (A).

• Both (A) and (R) are true and (R) is the correct explanation of (A).

• (A) is false but (R) is true.

• (A) is true but (R) is false.

Answer 1

Both (A) and (R) are true and (R) is the correct explanation of (A).