When a new partner is admitted by making an investment in the partnership, the old partners' capital accounts are always credited.

Question

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When a new partner is admitted and makes an investment in the partnership, the new partner's capital account is credited with the amount of the investment. The old partners' capital accounts are not directly affected by this transaction; adjustments to their capital accounts, if any, would occur based on the agreement for revaluation of assets or redistribution of ownership percentages, not from the new partner's investment itself.

When a New Partner Is Admitted by Making an Investment