Question

Assertion (A): On retirement, of a partner's the old partnership agreement comes to an end and a new partnership agreement comes into existence between the remaining partners.

Reason (R): Retirement of the partnership leads to the reconstitution of the firm.

Options

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

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

• Assertion (A) is true, but Reason (R) is false.

• Assertion (A) is false, but Reason (R) is true.

Answer 1

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

Explanation:

When a partner retires, the partnership is reconfigured, resulting in the end of the previous agreement and the start of a new one.