Commerce Exam > Commerce Questions > Arti and bharti are partners in a firm sharin...
Start Learning for Free
Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000.
?
Most Upvoted Answer
Arti and bharti are partners in a firm sharing profit in 3:2 ratio. Th...
Reconstitution of a Partnership Firm: Admission of a Partner
Admission of a new partner in a partnership firm is one of the ways to expand the business. The process of admission of a partner involves a change in the existing profit sharing ratio, the revaluation of assets and liabilities, and the recording of goodwill.
Relevant Points to Consider
Before admitting a new partner in a partnership firm, the following points should be considered:
1. Mutual Agreement: The existing partners should mutually agree to admit a new partner.
2. New Profit Sharing Ratio: The new profit sharing ratio should be agreed upon by all the partners.
3. Valuation of Assets and Liabilities: The assets and liabilities of the firm should be revalued to determine the correct value of the firm.
4. Goodwill: The goodwill of the firm should be calculated and recorded in the books of accounts.
5. Accounting Treatment: The accounting treatment for admission of a new partner should be done as per the provisions of the Partnership Act, 1932.
Accounting Treatment for Admission of a New Partner
The accounting treatment for admission of a new partner involves the following steps:
1. Revaluation of Assets and Liabilities: The assets and liabilities of the firm should be revalued to determine the correct value of the firm.
2. Adjustment of Capitals: The capital accounts of the existing partners should be adjusted as per the new profit sharing ratio.
3. Recording of Goodwill: The goodwill of the firm should be calculated and recorded in the books of accounts.
4. Accounting Entries: The following accounting entries should be passed:
a. For revaluation of assets and liabilities
b. For adjustment of capitals
c. For recording of goodwill
Conclusion
Admission of a new partner in a partnership firm involves a change in the existing profit sharing ratio, the revaluation of assets and liabilities, and the recording of goodwill. The accounting treatment for admission of a new partner should be done as per the provisions of the Partnership Act, 1932.
Admission of a new partner in a partnership firm is one of the ways to expand the business. The process of admission of a partner involves a change in the existing profit sharing ratio, the revaluation of assets and liabilities, and the recording of goodwill.
Relevant Points to Consider
Before admitting a new partner in a partnership firm, the following points should be considered:
1. Mutual Agreement: The existing partners should mutually agree to admit a new partner.
2. New Profit Sharing Ratio: The new profit sharing ratio should be agreed upon by all the partners.
3. Valuation of Assets and Liabilities: The assets and liabilities of the firm should be revalued to determine the correct value of the firm.
4. Goodwill: The goodwill of the firm should be calculated and recorded in the books of accounts.
5. Accounting Treatment: The accounting treatment for admission of a new partner should be done as per the provisions of the Partnership Act, 1932.
Accounting Treatment for Admission of a New Partner
The accounting treatment for admission of a new partner involves the following steps:
1. Revaluation of Assets and Liabilities: The assets and liabilities of the firm should be revalued to determine the correct value of the firm.
2. Adjustment of Capitals: The capital accounts of the existing partners should be adjusted as per the new profit sharing ratio.
3. Recording of Goodwill: The goodwill of the firm should be calculated and recorded in the books of accounts.
4. Accounting Entries: The following accounting entries should be passed:
a. For revaluation of assets and liabilities
b. For adjustment of capitals
c. For recording of goodwill
Conclusion
Admission of a new partner in a partnership firm involves a change in the existing profit sharing ratio, the revaluation of assets and liabilities, and the recording of goodwill. The accounting treatment for admission of a new partner should be done as per the provisions of the Partnership Act, 1932.
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
Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000. Related: Key Notes - Reconstitution of a Partnership Firm : Admission of a Partner?
Question Description
Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000. Related: Key Notes - Reconstitution of a Partnership Firm : Admission of a Partner? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000. Related: Key Notes - Reconstitution of a Partnership Firm : Admission of a Partner? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000. Related: Key Notes - Reconstitution of a Partnership Firm : Admission of a Partner?.
Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000. Related: Key Notes - Reconstitution of a Partnership Firm : Admission of a Partner? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000. Related: Key Notes - Reconstitution of a Partnership Firm : Admission of a Partner? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000. Related: Key Notes - Reconstitution of a Partnership Firm : Admission of a Partner?.
Solutions for Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000. Related: Key Notes - Reconstitution of a Partnership Firm : Admission of a Partner? 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 Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000. Related: Key Notes - Reconstitution of a Partnership Firm : Admission of a Partner? defined & explained in the simplest way possible. Besides giving the explanation of
Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000. Related: Key Notes - Reconstitution of a Partnership Firm : Admission of a Partner?, a detailed solution for Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000. Related: Key Notes - Reconstitution of a Partnership Firm : Admission of a Partner? has been provided alongside types of Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000. Related: Key Notes - Reconstitution of a Partnership Firm : Admission of a Partner? theory, EduRev gives you an
ample number of questions to practice Arti and bharti are partners in a firm sharing profit in 3:2 ratio. They admitted sarthi as a new partner and the new profit sharing ratio will be 2:1:1. Sarthi brought₹10, 000 for her share of goodwill. Goodwill already appeared in the books of arti and bharti at ₹ 60000. Related: Key Notes - Reconstitution of a Partnership Firm : Admission of a Partner? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© 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