Admission of a new partner to a partnership,by purchasing an existing partner's interests,simply transfers capital from one partner's account to another.

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When a new partner purchases an existing partner's share in a partnership, it is essentially a transfer of capital from one partner's account to another. The new partner's contribution becomes a part of the capital of the partnership, and the outgoing partner's capital is reduced by the amount that was paid for their share. This does not affect the overall capital of the partnership.

Admission of a New Partner to a Partnership,by Purchasing an Existing