Accountancy, asked by namaniya9905, 1 year ago

How is new partners admitted to a firm

Answers

Answered by Didwmsa
6
Perhas one of the basic requirement will be probably qualifications.
Answered by Anonymous
47
For admitting a new partner into the firm, there must be a consent of all the partners. The existing partners sell (or sacrifice) their share of profit in the favour of a new partner. 

A partner can be admitted into the firm-

to meet the need of extra capital for expansion of the buiness

sharing of risks

for efficient management of the business.

On the admission of a new partner, old partnership agreement comes to an end and a new partnership agreement is formed. This leads to the reconstituion of a firm.

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