Which of the following statements are true regarding admission of a new partner?
A. According to section 25 of the Indian Partnership Act, 1932, a person can be admitted as partner.
B. New Profit-sharing ratio is the ratio in which all partners, including new partners, will share future profits and loses of the firm.
C. New Profit Share=Profit Share Sacrificed- Old Profit Share
D. Sacrificing Ratio = Old Profit Share- New Profit Share
E. The Profit or loss which arises from Revaluation Account will be transferred to partner’s capital account
Choose the correct answer from the options given below:

Correct option is A

· Statement B (Correct): New profit-sharing ratio determines how all partners share future profits.
· Statement D (Correct): Sacrificing Ratio = Old Profit Share - New Profit Share.
· Statement E (Correct): Revaluation account profit/loss is transferred to partners' capital accounts.
· Statement A (Incorrect): Section 25 relates to liability of partners, not admission.
· Statement C (Incorrect): Formula is incorrect; it should be New Profit Share = Old Profit Share - Sacrificed Share.

Information Booster:
1. Sacrificing partners compensate for loss of share.
2. Admission requires consent from all partners.
3. Goodwill adjustment is done among old partners.
4. Revaluation of assets and liabilities occurs during admission.
5. A new partnership deed is usually drafted.

Additional Knowledge:
· Profit-sharing ratio changes upon admission.
· Revaluation ensures fair asset valuation.
· Partners can decide different ratios as per agreement.