In an admission of a partner by investment of assets the total net assets and total capital of the partnership do not change.

Question

Quizplus · Accepted Answer

In an admission of a partner by investment of assets, the total net assets of the partnership increase due to the addition of the new partner's investment. Consequently, the total capital of the partnership also increases as it reflects the combined capital contributions of all partners, including the new one.

In an Admission of a Partner by Investment of Assets