Read the following facts about the admission of a partner.
A) A new partner acquires his share from the old partners that reduces the old partners share in profits.
B) The partner's capital must be adjusted so as to be proportionate to their new profit sharing ratio.
C) Assets and Liabilities may be revalued and reassessed on admission of a partner.
D) Adjustment for Reserves and Accumulated profits/loss is done.
E) Profit sharing ratio of existing partners may change on admission of a new partner.

Choose the correct answer from the options given below:

A, C, D and E only

A) A new partner acquires his share from the old partners that reduces the old partners share in profits- This is true as the new partner gets from the existing partner which reduces their share in profits.
B) The partner's capital must be adjusted so as to be proportionate to their new profit sharing ratio - This is not true because there is no such compulsion of adjusting capital, it all depends on the partners whether they want to adjust their capital to new ratio or not.
C) Assets and Liabilities may be revalued and reassessed on admission of a partner- This is true because Assets and liabilities are revalued so that new partner does not gain or suffer loss on admission because there is no involvement of new partner prior to admission.
D) Adjustment for Reserves and Accumulated profits/loss is done- This is true because reserves and accumulated profits or losses are distributed between old partner do that new partner neither get gain nor suffer loss.
E) Profit sharing ratio of existing partners may change on admission of a new partner- This is true because on admission profit sharing ratio may changes according to the part of share that is given to new partner.