Question : Assertion (A): A partnership deed may contain clauses that differ from those found in the Partnership Act of 1932, and in such cases, the provisions of the partnership deed take priority.
Reason (R): When partners cannot come to an agreement on a topic, the Partnership Act of 1932's provisions take effect (say, profits sharing ratio).
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but the Reason (R) is false
Option 4: Assertion (A) is not correct but the Reason (R) is correct
Correct Answer: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Solution : The Partnership Act's rules will be in effect in the absence of a partnership deed. Everything pertaining to the partners' dealings with one another will be spelled out in the partnership deed. However, in the absence of a contract, the Indian Partnership Act of 1932 must be followed when conducting the accounting.
Hence the correct answer is option 1.
Related Questions
Trending Articles/News
