A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2016 · Q121 Mark
A partnership admits a new partner. Which statement is correct?
AProfits will always be shared equally following the new partner's admission.
BThe new partner will always benefit if assets are later revalued upwards.
CThe new partner must always contribute capital to the partnership.
DThe new partner will always pay for a share of partnership goodwill.
✓ Correct answer
B: The new partner will always benefit if assets are later revalued upwards.
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