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The reconstitution /Admission of partnership primarily involves change in the form of partnership.

There is change in agreement among the partners which leads to change in the relationship between the partners and change in share of the profit/losses of the partners in the firm. When the new partner is admitted in the business, he brings capital and his share of goodwill. Old partners have to sacrifice their partnership agreement Changes.

According to section 31 (1) of the partnership Act 1932, A person can be admitted as a new partner only with the consent of all existing partner unless otherwise agreed upon. New partner will bring his share of Goodwill and Capital and Enjoy the right to share the future profits.

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