Identify various matters that need adjustments at the time of admissio

1.	Identify various matters that need adjustments at the time of admission of a new partner.
Answer» The important points which require attention at the time of admission of a new partner: • New profit sharing ratio; • Sacrificing ratio; • Valuation and adjustment of goodwill; • Revaluation of assets and Reassessment of liabilities; • Distribution of accumulated profits (reserves); and • Adjustment of partners capitals.

Identify various matters that need adjustments at the time of admission of a new partner.

Answer»

The important points which require attention at the time of admission of a new partner:

• New profit sharing ratio;

• Sacrificing ratio;

• Valuation and adjustment of goodwill;

• Revaluation of assets and Reassessment of liabilities;

• Distribution of accumulated profits (reserves); and

• Adjustment of partners capitals.