From which of the following sources can partnership increase their capital?

A.

Sales of shares

B.

Admission of new partners

C.

Discharge of mortgage

D.

Grants from relatives

Correct answer is B

Partnership. An association of two or more persons engaged in a business enterprise in which the profits and losses are shared proportionally. A partnership can maintain a single partnership capital account for all partners, with a supporting schedule that breaks down the capital account for each partner

Admission of new partners is a major source of increasing capital in partnership