what is admission of partner?
Answers
Answer:
ADMISSION OF A PARTNER- MEANING Inclusion of a new person as a partner to an existing firm is called admission of a partner. For the right to share profit of the partnership firm, the new partner is required to bring some amount which is known as premium or his share of goodwill.
Answer:
Explanation:
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 revaluation of assets, changes in capital account etc. Let us see the accounting effects of admission of a new partner in a firm.
Reconstitution of a Partnership Firm
Adjustment of Capital and Change in Profit Sharing Ratio Among Existing Partners
Adjustment and Revaluation of Assets
Goodwill