Which are the matters on which accounting adjustments are required at

1.	Which are the matters on which accounting adjustments are required at the time of the admission of a new partner?
Answer» At the time of the admission of a new partner, accounting adjustments are required on the following 1. Capital of the new partner 2. Ascertainment of profit sharing ratios – new and sacrificing 3. Revaluation of assets and liabilities 4. Adjustment of accumulated profits (including reserves) or losses. 5. Calculation of goodwill 6. Adjustment of capital accounts of partners.

Which are the matters on which accounting adjustments are required at the time of the admission of a new partner?

Answer»

At the time of the admission of a new partner, accounting adjustments are required on the following

1. Capital of the new partner

2. Ascertainment of profit sharing ratios – new and sacrificing

3. Revaluation of assets and liabilities

4. Adjustment of accumulated profits (including reserves) or losses.

5. Calculation of goodwill

6. Adjustment of capital accounts of partners.