A newly admitted partner has a right to:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Share the future profits of the partnership firm
A new partner joins the firm with two rights: to share its assets and to share its profits from the date of admission. Everything the firm earned or built up before he joined belongs to the old partners, and he pays them for it (for goodwill) or they take it themselves (reserves and accumulated profits).
Why the other options are incorrect
Option (1) Share the existing general reserve of the partnership firm — Incorrect. A general reserve is profit of earlier years, so it is distributed among the old partners in their old ratio before the new partner comes in.
Option (3) Share the present available capital reserves — Incorrect. Reserves existing on the date of admission were built up by the old partners and go to them, not to the newcomer.
Option (4) Share the existing goodwill of the partnership firm — Incorrect. The existing goodwill was earned by the old partners. The new partner compensates them for it by bringing in a premium for goodwill; he does not get a free share in it.
NCERT (2026-27 edition): |