The new partner acquired the rights on admission into the firm. He acquires :

(A) Rights in past profits of firm before admission.

(B) Right to share in the future profits of the firm.

(C) Right to share assets of the firm.

(D) The right to carry on competing business.

Choose the correct answer from the options given below:

(B) and (C) only

The correct answer is option 1- (B) and (C) only.

The new partner acquired the rights on admission into the firm. He acquire the Right to share in the future profits of the firm and assets of the firm.

When firm requires additional capital or managerial help or both for the expansion of its business a new partner may be admitted to supplement its existing resources. According to the Partnership Act 1932, a new partner can be admitted into the firm only with the consent of all the existing partners unless otherwise agreed upon. With the admission of a new partner, the partnership firm is reconstituted and a new agreement is entered into to carry on the business of the firm. A newly admitted partner acquires two main rights in the firm:

1. Right to share the assets of the partnership firm; and

2. Right to share the profits of the partnership firm.