Admission of New Partner Q&A

Written by True Tamplin, BSc, CEPF®

Reviewed by Editorial Team

Updated on March 12, 2023

1. Why and how are new partners admitted in a partnership business?

2. What kind of accounting treatment is required when a new partner is admitted?

3. What is meant by old ratio?

4. What is meant by new ratio?

5. What is meant by sacrificing ratio?

6. Define revaluation.

7. Who receives the profit from the revaluation of assets and liabilities?

8. State the usual methods of that are applied to calculate the value of goodwill.

9. What does amalgamation mean?

10. What general entry is passed for the transfer of the general reserve?

Admission of New Partner Q&A FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.