A newly admitted partner acquires an immediate statutory right to:
- AShare future profits of the firm after the date of admission
- BShare the assets of the firm generated before their admission without capital contribution
- CShare the general reserves already appearing in the Balance Sheet prior to their admission
- DDemand extra profits above their agreed share if the business makes high profits
Solution & Step-by-step Explanation
When a new partner joins a firm, they contribute capital to secure two primary rights:\begin{enumerate}\item The right to share in the firm's future assets.\item The right to \textbf{share in the future profits of the firm earned after their admission date}.\end{enumerate}Accumulated balances like past general reserves or old profits belong entirely to the old partners and are split before the new partner joins.