Answer:
It is true.
Explanation:
When a new partner is admitted, there is a need to value the partnership's assets at fair value i.e at market value to be able to ascertain the current value of the business . This will be used as basis for calculating the shareholding of the new partners based on his contribution.
In the same manner, when a partner is exiting, it will helps in calculating the amount that is payable to the exiting partner.
