Admission of a Partner

Admission means when a new partner joins the firm and work with remaining partners in the firm. There are some specific rules and treatment for some items when the new partner join in :-

1. Admission of a Partner (RECONSTITUTION of a FIRM)
2. What will be the effect of admission on old partners
3. What will be the change in ratios and what is the concept of sacrificing ratio and new profit-sharing ratio
4. What is the good will. Why the question arises on admission of a partner and how to compute for it. What will be the accounting treatment in admission.
5. What is revaluation of assets and liabilities and why is it and how is it done?
6. How the treatment of accumulated profits, reserves are taken in to accounting treatment.
7. Adjustment of Capital.

This Lesson covers all basic concepts relating to fundamentals of Admission of a Partner in a Partnership firm.