Question

A newly admitted partner acquires two main rights in the partnership firm.
Identify the correct rights of the newly admitted partner.
(A) Right to share assets of the partnership firm
(B) Right to claim interest on capital
(C) Right to claim remuneration for firm’s work
(D) Right to share profits of the partnership firm
Choose the correct answer from the options given below:

• (A) and (D) only
• (B) and (C) only
• (C) and (D) only
• (B) and (D) only

Answer 1

The Correct Option is A

When a new partner is admitted into a partnership, they acquire certain rights within the firm. The two primary rights of a newly admitted partner are:

• Right to share assets of the partnership firm:
  The newly admitted partner has a right to claim a share in the assets of the firm, which includes the right to participate in the distribution of assets upon dissolution or as per the partnership agreement.
• Right to share profits of the partnership firm:
  The new partner has a right to share the profits of the firm according to the agreed profit-sharing ratio.

However, the newly admitted partner does not automatically have a right to claim:

• Interest on capital: This is usually provided as per the partnership agreement but is not a fundamental right for a new partner.
• Remuneration for firm’s work: This is usually paid to working partners, but it is not a guaranteed right for all partners.

The correct rights of the newly admitted partner are (A) Right to share assets of the partnership firm and (D) Right to share profits of the partnership firm.

Thus, the correct answer is (A): (A) and (D) only.

Answer 2

A newly admitted partner generally has the following main rights in a partnership firm:
- Right to share assets of the partnership firm (A): Upon dissolution or liquidation of the partnership, the new partner is entitled to a share of the assets, just like existing partners.
- Right to share profits of the partnership firm (D): The new partner has the right to share in the profits of the firm according to the agreed profit-sharing ratio. However, a newly admitted partner typically does not have the following rights:
- Right to claim interest on capital (B): This is not a guaranteed right unless stated in the partnership agreement.
- Right to claim remuneration for the firm’s work (C): Partners are not entitled to remuneration unless agreed upon.
Therefore, the correct rights are (A) and (D).