From which of the following sources can partnership increase their capital?

From which of the following sources can partnership increase their capital?

  • A.
    Sales of shares
  • B.
    Admission of new partners
  • C.
    Discharge of mortgage
  • D.
    Grants from relatives
Correct Answer: Option B
Explanation

Partnership. An association of two or more persons engaged in a business enterprise in which the profits and losses are shared proportionally. A partnership can maintain a single partnership capital account for all partners, with a supporting schedule that breaks down the capital account for each partner

Admission of new partners is a major source of increasing capital in partnership

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