Admission of a new partner,by contributing directly to the partnership,increases both assets and liabilities by the same amount.

Question

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Admission of a new partner by contributing directly to the partnership increases assets but does not affect liabilities. The contribution directly increases the partnership's assets (e.g., cash or property) and the capital account of the new partner, without impacting liabilities.

Admission of a New Partner,by Contributing Directly to the Partnership,increases