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.

Retirement of Partner

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