Need for admission of a new partner

A new partner is admitted in to the firm so as to:- 1) Increase the capital of the firm for the expansion plans of the business. 2) Include a capable and efficint employee like a manager into partnership so as to encourage him. 3) To take advantage of the experience, reputation and goodwill of the incoming partner etc. Admission of a new partner results in the reconstitution of a partnership firm ending the existing agreement. Hence a new partnership agreement comes into existence. A new partnership deed is prepared at…