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easyMCQCUET Accountancy 2025 24 May Shift 12026Accountancy
1 mark

, and are partners in a firm. If is admitted as a new partner then:

  1. A
    The old firm and old partnership are dissolved
  2. B
    The old firm is dissolved
  3. C
    The old partnership is reconstituted
  4. D
    The old partnership firm is dissolved

Solution & Step-by-step Explanation

When a new partner joins a firm, the existing partnership agreement comes to an end and a new agreement takes its place. This process is called the reconstitution of the partnership. The physical business/firm itself is not dissolved.

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, and are partners in a firm. If is admitted as a new partner then:
A
The old firm and old partnership are dissolved
B
The old firm is dissolved
C
The old partnership is reconstituted
D
The old partnership firm is dissolved

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