Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
How a New Partner may be admitted into a partnership firm?
Options:
with the consent of anyone partner
with the consent of a majority of partners
With the consent of all old partners
With the consent of 2/3rd of old partners
Correct Answer:
With the consent of all old partners
Explanation:
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.