A partnership is not dissolved when:-

When a new partner is admitted into a firm, it leads to reconstitution of the partnership, not dissolution of the partnership firm.

Reconstitution means the partnership undergoes a change in its constitution (composition of partners or profit-sharing ratio), but the firm continues to exist and carry on its business activities. The admission of a new partner is a common example of reconstitution.

Dissolution means the partnership firm ceases to exist as a business entity. This happens when:

• The firm's business is closed down permanently (Option 2)
• The firm's books of accounts are permanently closed (Option 3)
• The economic relationship between partners comes to an end (Option 4)

In case of admission of a new partner:

• The existing partnership deed ends
• A new partnership deed comes into effect
• However, the firm continues with a new set of partners
• Assets and liabilities are revalued but the business operations continue

Therefore, admission of a new partner does not dissolve the partnership firm; it merely reconstitutes it.