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The deed says old profits and losses will be distributed among old partners before admission of a new partner. Which principle does this show?

Answer and explanation

Correct answer: Settlement of old rights

The incoming partner is not given share in old results when the deed says so. Old partners settle their old rights.

Related tags

AdmissionOld ProfitsOld PartnersPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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