Question

Admission of a partner is one of the modes of reconstituting the firm under:

(A) The old partnership ended and a new one between all partners (including the new partner) comes into existence.

(B) The new partnership ended and the old one between all partners (including the new partner) comes into existence.

(C) The old partnership ended and a new one between all partners (excluding the new partner) comes into existence.

(D) The old partnership ended and a new one between all partners (excluding the old partner) comes into existence.

Options

• (A)

• (C)

• (B)

• (D)

Answer 1

(A)

Explanation:

Admission of a partner is one of the methods of reconstitution of a partnership firm, in which a new partner is admitted. It means, it is the end of the old partnership and the beginning of a new partnership between all the partners including the new partner.