When a new partner is admitted to a partnership, there is a need to revalue the?

When a new partner is admitted to a partnership, the partnership agreement usually requires that the new partner invests some capital into the business in exchange for a share of the profits. To determine the value of the new partner's investment, there is a need to revalue the assets and liabilities of the business. This is because the admission of a new partner changes the ownership structure of the business, and therefore the value of the business as a whole. Revaluing the assets and liabilities of the business allows the partners to determine the true value of the business, taking into account any changes in the value of the assets or liabilities since the last valuation. This information is then used to determine the new partner's share of the partnership and the amount of capital they need to invest to become a partner. Therefore, the correct answer is "assets and liabilities of the business". This reflects the need to revalue the assets and liabilities of the business in order to determine the value of the new partner's investment.