When a new partner is admitted to a partnership, all partnership assets should be revised to reflect current prices.

Question

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When a new partner is admitted to a partnership, it is important to revise the balance sheet of the partnership to reflect current prices of assets and liabilities. This is to ensure that the new partner's capital contribution and profit share are based on the current value of the partnership's assets and liabilities. It also helps to provide a more accurate picture of the financial position of the partnership.

When a New Partner Is Admitted to a Partnership, All