Chapter 2 Reconstitution of a Partnership Firm-Admission of Partner
[file content begins] English Section Accountancy Chapter 2: Reconstitution of Partnership Firm – Admission of a Partner – Important Topics: Modes of Reconstitution of Partnership Firm Admission of a New Partner – Rights & Required Adjustments New Profit Sharing Ratio – Calculation Methods (6 types) Sacrificing Ratio – Meaning & Calculation Goodwill – Definition, Factors Affecting Value, Need for Valuation Valuation of Goodwill – Average Profit, Super Profit, Capitalisation Methods Treatment of Goodwill on Admission (Cash brought, not brought, hidden goodwill, existing goodwill written off) Adjustment for Accumulated Profits & Losses (Reserves, P&L Balance) Revaluation of Assets & Liabilities – Revaluation Account (Journal Entries, Profit/Loss Transfer) Adjustment of Partners’ Capitals (Proportionate to New Profit Sharing Ratio) Change in Profit Sharing Ratio among Existing Partners Previous Year ...