Question 18 of 40
Q.Which of the following statements is not true in relation to admission of a partner ?
(a) The firm is reconstituted under a new agreement
(b) Generally mutual rights of the partners change
(c) The existing agreement does not come to an end
(d) The profits and losses of the previous years are distributed to the old partners
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2022MCQ· 1mImportance★★★★★
45% · 18/40 Questions
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Start your 14-day free trial to unlock the full solution →The false statement is (c): on admission the existing agreement does come to an end.
In the Tamil Nadu HSC Class-12 Accountancy syllabus, admission of a partner reconstitutes the firm. Let us test each statement:
- (a) The firm is reconstituted under a new agreement — true.
- (b) Generally the mutual rights of the partners change (new profit-sharing ratio, sacrifice by old partners) — true.
- (c) The existing agreement does not come to an end — false; the old partnership deed terminates and a fresh one is drawn up. …
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