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JAMB Principles of Accounts 1994 Question 37

Question 37

Partnership Admission, Retirement and Dissolution

Under which of the following conditions is a partnership dissolved?

  1. A.Change of the partnership's head office
  2. B.Admission of a new partner
  3. C.Purchase of a large quantity of fixed assets
  4. D.Retirement of a manager who is not a partner.
Show the answer and explanation

Answer: B (Admission of a new partner)

Explanation

Admitting a new partner changes the membership, so the old partnership is legally dissolved and a new one formed.