Curriculum
Grade XII Accountancy
Tabular Notes
0/8
Work Sheets
0/8
Interactive Lessons
0/12
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Ch-1 Accounting for Partnership: Fundamentals
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Ch-2 Goodwill: Nature and Valuation
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Ch-3 Change in Profit-Sharing Ratio
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Ch-4 Admission of a Partner
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Ch-5 Retirement or Death of a Partner
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Ch-6 Dissolution of a Partnership Firm
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Ch-7 Issue of Shares
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Ch-8 Issue of Debentures
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Ch-9 Financial Statements of a Company
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Ch10-Analysis-of-Financial-Statements
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Ch-11-Accounting Ratios
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Ch-12 Cash Flow Statement
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Ch-4 Admission of a Partner
School Revise · Class 12 Accountancy · Chapter 4
Admission of a Partner
A new partner brings capital and a share of goodwill. We find the firm goodwill, revalue, and share reserves among the old partners.
Goodwill on admission
If the new partner brings goodwill for a share, the firm goodwill = goodwill brought / share of the new partner. The old partners share it in their sacrificing ratio.
Revaluation and reserves
Assets and liabilities are revalued and reserves shared among the old partners in the old ratio, before the new partner is admitted.
Practise it yourself
A problem appears below. Work it out, type your answer, and press Check. Use Show working if stuck, Next for another, New set to reshuffle. Endless practice.
Worked examples
C brings 20,000 goodwill for 1/4 share.
Firm goodwill = 20,000 ÷ 1/4 = 80,000.
Assets up 25,000, liabilities up 5,000.
Revaluation profit 20,000.
Goodwill brought 24,000, sacrifice 2:1.
A 16,000; B 8,000.
Quick summary
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On admission, the firm goodwill = goodwill brought / the new partner share; old partners share it in the sacrificing ratio. Assets and liabilities are revalued and reserves shared among old partners in the old ratio before admission. |
© 2026 School Revise. Original content aligned to the CBSE and NCERT Class 12 Accountancy syllabus. Unauthorised copying is not permitted.
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