TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 5 – Admission of A Partner 2021-22

TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 5: Class 12 Accountancy Vol 1 Chapter 5 is all about the Admission of a Partner. It is one of the important chapters of CBSE Class 12. This article will provide all the important topics in detail which are covered in the chapter. You can easily donwload TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 5 PDF for free. 

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TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 5

TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 5 Detailed Topics  

Some important topics are discussed in this chapter. Also, the questions are based on these important topics.  

1. Meaning: According to the Partnership Act 1932, a new partner can be admitted into the firm only with the consent of all the existing partners unless otherwise agreed upon. With the admission of a new partner, the partnership firm is reconstituted and a new agreement is entered into to carry on the business of the firm.  
2. Need for a new partner:  

• When more capital is needed  
• When a new person possesses expertise and knowledge which will provide fruitful to the business.  
• When the new person is renowned and adds to the goodwill of the firm.  

1. Calculation of new profit sharing ratio: when the ratio of only new Partner is given, when new partner purchases his share of profit from the old partners equally when new partner purchases his share of profit from the old partners in a particular ratio when new Partners’ share of profit is not given and the old partners sacrifice some part of their share in favor of the new partner. 
2. Adjustment required at the time of admission of a new partner  
3. Net profit sharing ratio  
4. Sacrificing ratio  
5. Treatment of goodwill, hidden goodwill,  
6. When a new partner brings in proportionate capital  
7. Revaluation of assets and re-assessment of liabilities.  
8. Accounting treatment of reserves, undisturbed profits, and losses  
9. Adjustment of capital 
10. Adjustment of old partners accounts  
11. Steps involved in the adjustment of capital  

These are the topics explained in detail in Admission of a Partner.  

TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 5 Sample Questions  

In this section, the students will get TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 5 Sample Question. These will provide a glimpse of the questions. 

Q1. State any two reasons for the preparation of the Revaluation Account on the admission of a new partner.  

A. The two reasons for the preparation of Revaluation Account on the admission of a new partner are:-  

1. Assets and Liabilities may appear in the books at revised (new) values.  
2. Assets and Liabilities may appear in the books at old values.  

Q2. What do understand by the admission of a Partner? How is a new partner admitted to the firm?  

A. When a new partner is admitted into the firm, it is known as an admission of a new partner. On the Admission of a new partner, the old partnership comes to an end new partnership comes into existence. A person can be admitted as a new partner:-  

1. If it is so agreed in the Partnership Deed  
2. In the Absence of the Partnership Deed, if all the partners agree to the admission.  

A. At the time of admission, a new partner who acquires the share in future profits from the existing Partners should compensate sacrificing Partners by paying them an amount, termed as goodwill or premium of goodwill.  

We have included complete information regarding CBSE TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 5 – Admission of a partner. If you have any questions feel free to ask in the comment section. 

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