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Reconstitution of Partnership : Admission of a Partner — Chapter Summary

ICSE · Class 12 · Accountancy

Summary of Reconstitution of Partnership : Admission of a Partner for ICSE Class 12 Accountancy. Part of the ICSE Class 12 Accountancy syllabus.

68 questions38 flashcards6 formulas & key relations5 concepts

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Overview

Reconstitution of partnership means a change in the partnership agreement while the firm continues. Admission of a partner is one important cause of reconstitution. A new partner joins the firm with rights in future profits and in the assets of the firm, while the old partners adjust their shares, c

Key Concepts

A change in the partnership agreement

A change in the partnership agreement ends the old agreement and creates a new one, while the firm continues. Admission of a partner is one occasion o

A person admitted into the firm

A person admitted into the firm as a partner. He is not liable for acts of the firm done before admission and gets the right to share future profits a

The ratio in which all partners

The ratio in which all partners, including the incoming partner, share future profits and losses. It is found using the formula New share = Old share

The ratio in which old partners

The ratio in which old partners give up their share in favour of the new partner. Formula: Sacrificing ratio = Old ratio - New ratio.

The amount paid by the new

The amount paid by the new partner for the benefit of sharing future profits based on the old partners’ past efforts. If any partner makes no sacrific

Learning Objectives

  • Understand the meaning of reconstitution of partnership and admission of a partner
  • Identify why a new partner is admitted and what rights he acquires
  • Calculate new profit sharing ratio and sacrificing ratio
  • Apply the rules of goodwill treatment, including hidden goodwill
  • Record revaluation of assets and liabilities through Revaluation Account

Frequently Asked Questions

What are the important topics in Reconstitution of Partnership : Admission of a Partner for ICSE Class 12 Accountancy?
Key topics in Reconstitution of Partnership : Admission of a Partner include Meaning and Occasions of Reconstitution, New Profit Sharing Ratio and Sacrificing Ratio, Treatment of Goodwill and Hidden Goodwill, Accumulated Profits, Losses, and Specific Funds. Study these first, then practise questions on each for the ICSE Class 12 board exam.
How should I revise Reconstitution of Partnership : Admission of a Partner for the ICSE Class 12 board exam?
Learn the core ideas first, then work through the 68 practice questions on Reconstitution of Partnership : Admission of a Partner. Revise definitions regularly and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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