Modes of Reconstitution of a Partnership Firm

Which of the following may cause a change in the profit-sharing ratio of partners in a firm?

What is the effect of the death of a partner on a partnership firm?

Which mode of reconstitution involves a partner leaving the firm?

What happens when a new partner is admitted into a partnership firm?

Which of the following is NOT a mode of reconstitution of a partnership firm?

How is the revaluation of assets and reassessment of liabilities handled at the time of admission of a new partner?

What are the journal entries required for the treatment of goodwill on the admission of a new partner?

How are capital adjustments made to ensure that partners' capitals are proportionate to the new profit-sharing ratio when a new partner is admitted?

What are the different methods for valuing goodwill, such as average profits and super profits?

How is the sacrificing ratio calculated when a new partner is admitted?

How is the new profit-sharing ratio calculated when a new partner is admitted?

Provide an example using an imaginary balance sheet to show the valuation of assets and liabilities after revaluation.

How are assets and liabilities valued in the books of the firm after revaluation has been done?

How are accumulated profits, losses, and reserves dealt with on the admission of a new partner?

What are the various methods for the treatment of goodwill on the admission of a new partner?

How do you deal with goodwill when a new partner is not in a position to bring his share of goodwill in cash?

Provide an example showing how the new capital of each partner is determined and necessary adjustments made.

How do you determine the new capital of each partner if it is agreed that the capital of all the partners should be proportionate to the new profit-sharing ratio?

What are the various methods of valuation of goodwill?

What factors affect goodwill?