question_answer

Assertion [A]:

When a new partner joins the partnership business, the goodwill of the firm is calculated to find his share of premium for goodwill.

Reason [R]:

Goodwill can be valued any time by using Average Profit Method, Super Profit Method and Capitalisation Method.

It can be calculated at the end of every year by taking profit of that year.

Choose the Correct Option from the following:

 

A) Assertion and Reason both are correct if viewed together in context of goodwill.

B) Assertion and Reason both are correct but Reason is not correct explanation of assertion

C) Both Assertion and Reason are not correct

D) Only Assertion is correct