All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
Commerce Exam  >  Commerce Questions  >  what is admission of a partner? how the admis... Start Learning for Free
SaveJoin the Discussion on the App
what is admission of a partner? how the admission of a partner can take place?
?
Clear all your Commerce doubts with EduRev
Verified Answer
what is admission of a partner? how the admission of a partner can tak...
Here is the link:
Chapter Notes - Reconstitution of a Partnership Firm: Admission of a Partner - Accountancy, Class 12
https://edurev.in/studytube/chapter-notes-reconstitution-of-a-partnership-firm-admission-of-a-partner-accountancy-class-12/d658fcdd-7232-45cb-b695-9359c4b90c85_t
This question is part of UPSC exam. View all Commerce courses
Most Upvoted Answer
what is admission of a partner? how the admission of a partner can tak...



Admission of a Partner:
Admission of a partner refers to the process of introducing a new partner into an existing partnership firm. It involves the introduction of a new partner's capital, profit-sharing ratio, and mutual rights and duties among the partners.

How the Admission of a Partner can take place:
  • Agreement: The existing partners must agree to admit a new partner into the firm. This agreement should be formalized through a partnership deed.
  • Valuation of Assets and Liabilities: The assets and liabilities of the firm are revalued to determine the new partner's share in the profits and losses.
  • Adjustment of Capitals: The existing partners' capital accounts are adjusted to reflect the new partner's capital contribution.
  • Profit-sharing Ratio: The profit-sharing ratio among the partners is revised to accommodate the new partner.
  • Goodwill: The value of goodwill of the firm is determined and adjustments are made in the capital accounts accordingly.
  • Revaluation Account: A revaluation account is prepared to record any changes in the value of assets and liabilities.
  • Balance Sheet: The balance sheet of the firm is adjusted to reflect the admission of the new partner.


In conclusion, the admission of a partner involves various steps such as agreement, valuation of assets and liabilities, adjustment of capitals, revision of profit-sharing ratio, treatment of goodwill, preparation of a revaluation account, and adjustment of the balance sheet. It is essential to follow these steps accurately to ensure a smooth transition for the new partner in the partnership firm.

Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Similar Commerce Doubts

Top Courses for CommerceView all

Top Courses for Commerce

what is admission of a partner? how the admission of a partner can take place? Related: NCERT Solutions - Chapter 3 : Admission of a Partner -1 ,Partnership Account, Class 12, Accountancy?
Question Description
what is admission of a partner? how the admission of a partner can take place? Related: NCERT Solutions - Chapter 3 : Admission of a Partner -1 ,Partnership Account, Class 12, Accountancy? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about what is admission of a partner? how the admission of a partner can take place? Related: NCERT Solutions - Chapter 3 : Admission of a Partner -1 ,Partnership Account, Class 12, Accountancy? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for what is admission of a partner? how the admission of a partner can take place? Related: NCERT Solutions - Chapter 3 : Admission of a Partner -1 ,Partnership Account, Class 12, Accountancy?.
Solutions for what is admission of a partner? how the admission of a partner can take place? Related: NCERT Solutions - Chapter 3 : Admission of a Partner -1 ,Partnership Account, Class 12, Accountancy? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of what is admission of a partner? how the admission of a partner can take place? Related: NCERT Solutions - Chapter 3 : Admission of a Partner -1 ,Partnership Account, Class 12, Accountancy? defined & explained in the simplest way possible. Besides giving the explanation of what is admission of a partner? how the admission of a partner can take place? Related: NCERT Solutions - Chapter 3 : Admission of a Partner -1 ,Partnership Account, Class 12, Accountancy?, a detailed solution for what is admission of a partner? how the admission of a partner can take place? Related: NCERT Solutions - Chapter 3 : Admission of a Partner -1 ,Partnership Account, Class 12, Accountancy? has been provided alongside types of what is admission of a partner? how the admission of a partner can take place? Related: NCERT Solutions - Chapter 3 : Admission of a Partner -1 ,Partnership Account, Class 12, Accountancy? theory, EduRev gives you an ample number of questions to practice what is admission of a partner? how the admission of a partner can take place? Related: NCERT Solutions - Chapter 3 : Admission of a Partner -1 ,Partnership Account, Class 12, Accountancy? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses

Suggested Free Tests

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup