PPT : Admission of a new partner | Accountancy Class 12 - Commerce PDF Download

 Page 1


Partnership Accounts  
Admission of a New Partner 
CPT Section A Fundamentals of Accountancy Chapter 8 Unit 3 
Prof. Deepak Jaggi 
Page 2


Partnership Accounts  
Admission of a New Partner 
CPT Section A Fundamentals of Accountancy Chapter 8 Unit 3 
Prof. Deepak Jaggi 
Learning Objectives 
 
(1) Understand the reasons for which revaluation  or assets 
and liabilities is done. 
(2) Logic of treatment of Reserves and Debit Balances in case 
of admission of partner. 
(3) Techniques of arriving at the various Ratio’s. 
(4) Understand the Goodwill adjustment. 
(5) To Lay a solid foundation of accounting treatment in case of 
admission of partner. 
Page 3


Partnership Accounts  
Admission of a New Partner 
CPT Section A Fundamentals of Accountancy Chapter 8 Unit 3 
Prof. Deepak Jaggi 
Learning Objectives 
 
(1) Understand the reasons for which revaluation  or assets 
and liabilities is done. 
(2) Logic of treatment of Reserves and Debit Balances in case 
of admission of partner. 
(3) Techniques of arriving at the various Ratio’s. 
(4) Understand the Goodwill adjustment. 
(5) To Lay a solid foundation of accounting treatment in case of 
admission of partner. 
Partnership Accounts 
(Admission of a Partner) 
When 2 or more Partners are already doing 
business & they admit 1 more partner into their 
running business it is a case of Admission of a 
Partner  
Cont.… 
Page 4


Partnership Accounts  
Admission of a New Partner 
CPT Section A Fundamentals of Accountancy Chapter 8 Unit 3 
Prof. Deepak Jaggi 
Learning Objectives 
 
(1) Understand the reasons for which revaluation  or assets 
and liabilities is done. 
(2) Logic of treatment of Reserves and Debit Balances in case 
of admission of partner. 
(3) Techniques of arriving at the various Ratio’s. 
(4) Understand the Goodwill adjustment. 
(5) To Lay a solid foundation of accounting treatment in case of 
admission of partner. 
Partnership Accounts 
(Admission of a Partner) 
When 2 or more Partners are already doing 
business & they admit 1 more partner into their 
running business it is a case of Admission of a 
Partner  
Cont.… 
Example 
Partners already doing business- A and B = Old Partners 
Partner Admitted Now – C = Incoming Partner 
All the three partners together – A, B & C = New Partners 
Page 5


Partnership Accounts  
Admission of a New Partner 
CPT Section A Fundamentals of Accountancy Chapter 8 Unit 3 
Prof. Deepak Jaggi 
Learning Objectives 
 
(1) Understand the reasons for which revaluation  or assets 
and liabilities is done. 
(2) Logic of treatment of Reserves and Debit Balances in case 
of admission of partner. 
(3) Techniques of arriving at the various Ratio’s. 
(4) Understand the Goodwill adjustment. 
(5) To Lay a solid foundation of accounting treatment in case of 
admission of partner. 
Partnership Accounts 
(Admission of a Partner) 
When 2 or more Partners are already doing 
business & they admit 1 more partner into their 
running business it is a case of Admission of a 
Partner  
Cont.… 
Example 
Partners already doing business- A and B = Old Partners 
Partner Admitted Now – C = Incoming Partner 
All the three partners together – A, B & C = New Partners 
Reasons for Admission  of Partner 
 Additional capital required 
Specialized skill of the incoming partner 
Expansion of Business 
Avoiding competition 
Conti..