If a new partner is admitted into a partnership by investment the total assets and total capital will change.

Question

Quizplus · Accepted Answer

When a new partner is admitted into a partnership by investment, the total capital will increase due to the new investment made by the partner. Additionally, the total assets may also increase if the investment is used to acquire new assets. Therefore, both total assets and total capital will change.

If a New Partner Is Admitted into a Partnership by Investment