Question :
Assertion (A): Dissolution of partnership is different from the dissolution of the Partnership firm. Reason (R): Dissolution of partnership doesn’t dissolve the firm but the firm is dissolved in the partnership firm.
Option 1: Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct eplanation of Assertion (A).
Option 2: Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Option 3: Assertion (A) is true, but Reason (R) is false.
Option 4: Assertion (A) is false, but Reason (R) is true
Correct Answer: Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct eplanation of Assertion (A).
Solution : Dissolution of partnership refers to the reconfiguration of the business as a result of altered profit-sharing arrangements among the original partners, the admission of a new partner, the retirement or death of a partner, or the insolvency of a partner. The dissolution of a partnership, however, does not result in the firm's dissolution.
Hence the Correct answer is option 1.
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