Question

QUESTION 12
On the admission of a new
partner:
Old partnership is dissolved
Old firm is dissolved
Both (a) and (b)
None of these

Answer 1

Answer:

Explanation:

A new partner may be admitted when the firm needs additional capital or managerial help. According to the provisions of Partnership Act 1932 unless it is otherwise provided in the partnership deed a new partner can be admitted only when the existing partners unanimously agree for it. For example, A, B and C are partner's in a firm. If D is admitted as a new partner then the old partnership stands reconstituted.

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