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Admission Of Partner

Telangana Open School (TOSS) · Class 12 · Accountancy

Quick revision notes for Admission Of Partner — Telangana Open School (TOSS) Class 12 Accountancy. Key concepts, formulas, and definitions for last-minute revision.

48 questions20 flashcards5 concepts

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Key Topics to Revise

1

Meaning and Implications of Admission

  • Admission of a partner means a new person is inducted into an existing partnership firm.
  • It requires the consent of all existing partners unless otherwise agreed.
  • The firm is reconstituted, and a new partnership deed is prepared.
2

New Profit Sharing Ratio and Sacrificing Ratio

  • New profit sharing ratio is the proportion in which all partners (including the new one) will share future profits.
  • Sacrificing ratio is the ratio in which existing partners give up their share of profit for the new partner.
  • Sacrificing Ratio = Old Ratio – New Ratio.
3

Goodwill: Meaning, Factors, and Valuation

  • Goodwill is the intangible value of a firm’s reputation that enables it to earn excess profits.
  • It arises due to factors like location, quality, management efficiency, and market position.
  • Goodwill is valued at the time of admission because the new partner benefits from it.
4

Accounting Treatment of Goodwill

  • As per AS-10, goodwill is recorded only if paid in cash or kind.
  • If new partner brings cash for goodwill, it is credited to goodwill premium account and then transferred to old partners in sacrificing ratio.
  • If not brought in cash, the new partner’s capital is debited and old partners’ capital credited in sacrificing ratio.

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Full Notes

Key Concepts

When a new person joinsThe ratio in which all partnersThe ratio in which old partnersThe monetary value of a firm'sAssets and liabilities are revalued

Frequently Asked Questions

What are the important topics in Admission Of Partner for Telangana Open School (TOSS) Class 12 Accountancy?
Admission Of Partner covers several key topics that are frequently asked in Telangana Open School (TOSS) Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Admission Of Partner — Telangana Open School (TOSS) Class 12 Accountancy?
Understand the core concepts first, then work through the 48 practice questions available for this chapter. Revise formulas and 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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