| Assertion [A] : |
| Goodwill is shown in the books of accounts only when it is purchased. Self-generated Goodwill is not recorded in the books of accounts. |
| Reason [R] : |
| Accounting Standard-26 (AS 26) prescribes that goodwill should not be recognized in the books of accounts unless some money or money's worth is paid for it, |
| Choose the Correct Option from the following: |
A) Assertion and Reason both are correct and Reason is the correct explanation of assertion
B) Assertion and Reason both are correct but Reason is not correct explanation of assertion
C) Both Assertion and Reason are not correct
D) Reason is correct but Assertion is not correct
Correct Answer: A
Solution :
Assertion and Reason both are correct and Reason is the correct explanation of assertion
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