admission of a partner class 12th | easy steps to remember |

 admission of a partner means reconstruction of the partnership . when a new partner admitted , the existing agreement comes to an end and a new agreement exist including new partner .

now, here are some easy steps to remember the whole chapter very easily and quickly .

steps to remember : (to solve the problems )

* first of all you need to prepare a 4 accounts that is ; 

1 revaluation account.

2 partners capital account / partners current account if given . 

3 cash account / bank account .

4 balance sheet as on date  after admission .

*  after that you just find out the old ratio and new ratios of a partners from the question .

* than you need to find out the sacrificing ratio by using formula = old ratio - new ratio 

* after that you need to find the new goodwill of a new partners share .

* than distribute the new goodwill to the existing partner in their sacrificing ratios .

* read all the adjustments and tick it down in the given balance sheet .

* than make a entry of the liabilities and assets in your accounts from the old balance sheet .

* make sure that you have distributed the all the things in the old ratio from the old balance sheet .

* than solve all the adjustment and make entry of it according to it .

* every adjustment always have a two effects .

* now, close down the revaluation account and transfer the profit or loss of a partner to partners capital or current account .

* close the partners capital and cash account and transfer the balance to the new balance sheet according to their effects .

* tally the new balance sheet .