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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.
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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.
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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?
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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.
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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
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