Admission of a Partner: Accounting Treatment, Goodwill, Gaining Ratio etc

The compilation of these Accountancy Notes makes students exam preparation simpler and organised.

Reconstitution of a Partnership Firm – Admission of a Partner

Often times when a partnership firm is doing well it thinks about expanding. So new partners are admitted to the firm. There are changes to be made in the accounts of the firm like the revaluation of assets, changes in the capital account, etc. Let us see the accounting effects of the admission of a new partner in a firm.