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The balance of deferred revenue expenditure will be divided in the old ratio between old partners because such deferred revenue expenditure was not incurred with the permission of new partner and even it is occurred before entering of such new partner. Is this statement right? Answer me firstly in yes or no.?
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The balance of deferred revenue expenditure will be divided in the old...
No

- **Explanation**:
The statement is not entirely correct. When a new partner joins a partnership, the existing partnership agreement may need to be adjusted to reflect the new partner's contribution and share of profits or losses. Deferred revenue expenditure is an expense that is incurred in one accounting period but is recognized over a subsequent period.

- **Division of Deferred Revenue Expenditure**:
In the case of deferred revenue expenditure incurred before the entry of a new partner, the old ratio between old partners may not necessarily apply. The new partner did not have any role in incurring the expenditure, so it would be unfair to burden them with a share of the expenditure that they did not benefit from.

- **Adjustment of Partnership Agreement**:
It is advisable to review the partnership agreement and make necessary adjustments to allocate the deferred revenue expenditure in a fair and equitable manner. This may involve renegotiating the sharing ratios among partners to reflect the new partner's entry into the partnership.

- **Consultation with Partners**:
It is essential to communicate openly with all partners and reach a mutual agreement on how to deal with deferred revenue expenditure and any other financial implications of the new partner's entry into the partnership. Transparency and consensus among partners are crucial in maintaining a harmonious and successful partnership.
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The balance of deferred revenue expenditure will be divided in the old ratio between old partners because such deferred revenue expenditure was not incurred with the permission of new partner and even it is occurred before entering of such new partner. Is this statement right? Answer me firstly in yes or no.?
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