Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner) – Unimax Publications Class +2 – Solution

Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner) – Unimax Publications Class +2 – Solution of all practical problems with the animation and videos. First, we will clarify the meaning of the term Admission of a Partner shown as follows: 

Admission of Partner referred to entering a new partner or partner in the partnership firm for the share of profit and paying off his or their share of the firm’s goodwill and capital. When the firm needs more funding or services/knowledge to grow their business then they approach the new partner(s) against a share in the profit of the firm with the consent of all old partners. 

What is the Admission of Partner: –

The admission of the partner refers to the situation where an individual joins the existing partnership firm and the old partners agree to sacrifice their share of profit. This is the mode of reconstitution of Partnership Because, with the admission of a new partner, there is a need to create a new agreement/deed between all partners including the new partner and ends the existing agreement/deed. 

There will be a New profit sharing ratio among all partners because all(minimum one) old partners will sacrifice some portion of their profit share in the firm and the new partner will get some portion of the share of profit as per the deal with the old partners. 

Read the Full Article from the following link: –

Admission of Partner – Effects and Adjustments

Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner) – Unimax Publications Class +2 – Solution

Question wise solutions of the all Questions of Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner) – Unimax Publications Class +2 – Solutions are shown below: –