Balance Sheet after Admission of Partner
Precautions to be taken
Precautions while preparing Balance sheet of the new firm after Admission of a new partner
- Capitals of all the partners should be as per new profit-sharing ratio.
- All the Accumulated profits/losses should be shared in old profit-sharing ratio or as instructed in the question, so, should not be taken to the new balance sheet, if already distributed.
- All the assets/liabilities revalued should be shown at revised values in the new balance sheet, including cash/bank balance.