A new partner may be admitted into a partnership
Answers
Answer:
Admission of a new partner is the inclusion of a new partner as an associate or partner to an existing enterprise is known as an admission of a partner. For the right to share the profit of the partnership firm, the new partner is required to bring some amount which is known as a premium or his share of goodwill.
Explanation:
When an enterprise requires additional capital or organisational assistance or both for the growth of its trading concern, a new partner may be admitted to extending its current resources. With accordance to the Partnership Act 1932, a new partner can be admitted into the enterprise only with the agreement of all the existing partners until and unless otherwise consented upon. With the admission of a new associate, the partnership enterprise is restructured and a new agreement is entered into; to carry on the trading concern of the enterprise. A newly added partner obtains 2 primary rights in the enterprise :
Right to share the assets of the partnership firmRight to share the profits of the partnership firm