Which among the following is NOT true for New Profit Sharing Ratio:

When a new partner is admitted to a partnership, the new profit sharing ratio is determined based on mutual agreement between all partners involved. Let's examine why Option 3 is incorrect:

The new partner can acquire his share in multiple ways:

• From old partners in their old profit sharing ratio (default assumption)

• From old partners in a specifically agreed ratio different from their old ratio

• From one or more specific old partners only

• By old partners surrendering in any mutually agreed manner

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Why Option 3 is NOT TRUE:

Option 3 states that the new partner can acquire his share "only according to their respective contribution" and that "no any other way can be possible." This is incorrect because partnership law and accounting practices allow flexibility in how the new partner's share is acquired.

For example, if A and B are partners sharing profits in 3:2, and C is admitted:

• C can acquire equally from both (in 3:2 ratio)
• C can acquire entirely from A only
• C can acquire from A and B in 1:1 ratio (not their old 3:2 ratio)
• Any other arrangement mutually agreed upon

The phrase "no any other way can be possible at any condition" makes this statement false, as partnerships operate on the principle of mutual agreement, not rigid rules.

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The other three options correctly describe the principles of new profit sharing ratio - mutual agreement determines the arrangement, old ratio is the default assumption when nothing is specified, and old partners' individual ratios change based on their sacrifice to the incoming partner.