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The balance of differ revenue expenditure will be divided between old partners in old ratio because such expenditure was not enquired with the permission of new partner and even it is occurred before entering of such new partner. Is this statement is right? Please answer firstly in yes or no.?
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The balance of differ revenue expenditure will be divided between old ...
Yes
- Explanation:
- Pre-existing obligations: Revenue expenditure incurred before the admission of the new partner is considered a pre-existing obligation of the partnership. As such, it is the responsibility of the existing partners to bear the burden of such expenditure.
- Consent of new partner: Since the new partner did not provide consent or agree to the expenditure prior to joining the partnership, they cannot be held liable for any financial obligations incurred before their admission.
- Old ratio: As per the principle of sharing profits and losses in the old ratio, the burden of the pre-existing revenue expenditure should be shared between the old partners in their existing profit-sharing ratio.
- Equity and fairness: Allocating the pre-existing revenue expenditure to the old partners in their old ratio ensures equity and fairness in the distribution of financial responsibilities within the partnership.
- Legal implications: Holding the new partner liable for expenditure incurred before their admission may raise legal concerns and could lead to disputes within the partnership. It is essential to adhere to the established norms and principles of partnership agreements to maintain the integrity of the business relationship.
- Explanation:
- Pre-existing obligations: Revenue expenditure incurred before the admission of the new partner is considered a pre-existing obligation of the partnership. As such, it is the responsibility of the existing partners to bear the burden of such expenditure.
- Consent of new partner: Since the new partner did not provide consent or agree to the expenditure prior to joining the partnership, they cannot be held liable for any financial obligations incurred before their admission.
- Old ratio: As per the principle of sharing profits and losses in the old ratio, the burden of the pre-existing revenue expenditure should be shared between the old partners in their existing profit-sharing ratio.
- Equity and fairness: Allocating the pre-existing revenue expenditure to the old partners in their old ratio ensures equity and fairness in the distribution of financial responsibilities within the partnership.
- Legal implications: Holding the new partner liable for expenditure incurred before their admission may raise legal concerns and could lead to disputes within the partnership. It is essential to adhere to the established norms and principles of partnership agreements to maintain the integrity of the business relationship.
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The balance of differ revenue expenditure will be divided between old partners in old ratio because such expenditure was not enquired with the permission of new partner and even it is occurred before entering of such new partner. Is this statement is right? Please answer firstly in yes or no.?
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The balance of differ revenue expenditure will be divided between old partners in old ratio because such expenditure was not enquired with the permission of new partner and even it is occurred before entering of such new partner. Is this statement is right? Please answer firstly in yes or no.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The balance of differ revenue expenditure will be divided between old partners in old ratio because such expenditure was not enquired with the permission of new partner and even it is occurred before entering of such new partner. Is this statement is right? Please answer firstly in yes or no.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The balance of differ revenue expenditure will be divided between old partners in old ratio because such expenditure was not enquired with the permission of new partner and even it is occurred before entering of such new partner. Is this statement is right? Please answer firstly in yes or no.?.
The balance of differ revenue expenditure will be divided between old partners in old ratio because such expenditure was not enquired with the permission of new partner and even it is occurred before entering of such new partner. Is this statement is right? Please answer firstly in yes or no.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The balance of differ revenue expenditure will be divided between old partners in old ratio because such expenditure was not enquired with the permission of new partner and even it is occurred before entering of such new partner. Is this statement is right? Please answer firstly in yes or no.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The balance of differ revenue expenditure will be divided between old partners in old ratio because such expenditure was not enquired with the permission of new partner and even it is occurred before entering of such new partner. Is this statement is right? Please answer firstly in yes or no.?.
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