When a new partner joins a partnership firm, he is said to be admitted into partnership.
He is required to bring the following:
1. Capital for his share in the firm.
2. Goodwill for his share in the future profits.
New partner will enjoy the following rights after his admission:
1. His share in the future profits of the firm.
2. His share in the assets of the firm.
3. All other rights as a partner like right to be consulted, right to participate in decision making etc.
Adjustments required at the time of admission of the new partner from accounting point of view: