Question : Assertion (A): A profit and loss appropriation account is prepared to show how profits are distributed among partners in accordance with the Partnership Deed.

Reason (R): Only the working partner(s) have access to the books of accounts.

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

Question : Assertion (A): Dissolution of Partnership results in no change in the economic relationship.
Reason (R): Dissolution of Partnership firm results in the ending of the economic relationship.

Question : Assertion (A): A partner's interest on capital is paid only from profits.
Reason (R): Interest on capital is a profit appropriation that must be provided regardless of profit or loss.

Question : Assertion (A): Any firm that earns normal profits or is incurring losses has no goodwill.
Reason (R): Goodwill is the value of the reputation of a firm in respect of the profits expected in future over and above the normal profits.