Question

Assertion (A): On dissolution, if a partner is appointed to realise the assets and he gets a commission on realisation of assets, he will be liable to bear the realisation expenses also.

Reason (R): In the absence of specific agreement, partner doing the dissolution work and getting commission is not liable to bear the realisation expenses.

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.

Answer 1

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

Explanation:

If a partner is appointed to realise the assets and he receives a commission on realisation, he is liable to bear the realisation expenses unless there is a specific agreement stating otherwise. The reason stating that in the absence of a specific agreement, the partner is not liable to bear the realisation expenses is incorrect. Hence, assertion is correct and reason is wrong.