Why should we distribute advertisement suspense a/c between old partners while admitting new partner?
Ts grewal page 5.113 q.no 102

Dear Student,

Whenever, a new partner is admitted in the firm, all the existing fictitious assets are distributed amongst the old partners for the simple reason that they are the ones who had put their efforts and resources for those assets and it is them who will solely have right over those assets.
That is why, we distribute the advertisement suspense a/c between old partners while admitting new partner.

Regards

 

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