Question

Differentiate between the admission of a new partner through assignment of an interest and through investment in the partnership.

How might a partner withdrawing in violation of the partnership agreement and without the consent of the other partners be treated? What about a partner who is forced to withdraw?

Answer 1

Step:1 Definition

Admission of a partner through assignment of interest

Assingment of interest for admission of new partner in the partnership firm is the way of admission where a new partner purchases the rights of an Existing partner by making payment directly to the partner instead of firm. In this case an existing partner may or may not remain in the partnership firm.

Admission of a partner through Investment in the firm   

This is the another way of admission in a partnership firm where new partner make Investment in the firms capital in cash or in kind also he can invest through bringing goodwill in the firm since it has some future benifits. In this case an existing partner remain in the firm

Step: 2 Difference

Admission through assignment of interest	Admission through Investment in partnership firm
In this situation new partner purchases the right of an existing partner	In this case new partner makes investment in the partnership firms capital
If the new partner purchases all the rights of an existing partner than existing partner must leave the firm	In this case since no right is purchased hence no need to existing partner leave the firm
In this case the terms of an agreement whould be .who will be givig or receiving the business interest .How much will the old partner receive in return for giving a part of their interest.	In this case the terms of an agreement whould be How much Cash the new partner must bring what will be the ratio of capital and their profit share Goodwill should be paid in kind or throug in cash.

In case of Partner withdraw in violation of the partnership agreement and without the consent of the other partners than the partner leaving the firm may be held liable for any loss cause to the firms due to not timely withdrawal. After the dissolution the partnership firm is legaly new but partner will continue with the same business. moreover the partnership deed may provide the partner to discontinue as partner without dissolving the firm but the old partners should purchases the right of an leaving partner

The term forced to withdraw from the partnership is also know as non voluntary withdrawal or without the partner consent it may be occur when the partner may have passed away or may become incapicity to contract or may be doing any crime by partner so that he will not be partner any more as per the agreement. other example like partner become bankruptcy serious illness or breach of contract etc all these example due to which a partner may forced to withdraw by another partners