CUET Preparation Today
Y and Z are partners in a firm. If W is admitted as a new partner, what will happen? |
Old firm is dissolved Old partnership is reconstituted Old firm and Old partnership is dissolved Old firm assets realised |
Old partnership is reconstituted |
The correct answer is Option (2) - Old partnership is reconstituted. When a partnership firm undergoes reconstitution, it implies there are changes in the existing partnership agreement, such as the admission of new partners, retirement of existing partners, or changes in profit-sharing ratios. |
