Revaluation/reassessment of assets and liabilities

why revaluation of assets and liabilities is done at the time of admitting new partner??
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Quick Summary
This discussion explores the reasons behind revaluing assets and liabilities upon the admission of a new partner in a partnership. While not always strictly required by law, revaluation ensures fair accounting and reflects the true current value of the business's assets and liabilities. This process is crucial for accurately determining the new partner's capital contribution and the existing partners' profit-sharing ratios.

Partnership act must suggest that. I dont remember reading rhat part. Technically its not required because its only profit sharing ratio which is important. Or maybe they want to classify assets and liabilities based on partners accounts for clarity

Just like i guessed right the answer is simple accountability. https://unacademy.com/content/cbse-class-11/study-material/accountancy/revaluation-of-assets-and-reassessment-of-liabilities/#:~:text=profit%20or%20loss.-,Ans.,of%20fixed%20assets%20and%20liabilities.

I didt guesz it but derived it from the fact

CA Revaluation is difgerent than b.com poor quality revaluation.  Nomenclature clashes in partnership accounting. Lucky MBA doesnt use any vocabulary

 

I found this article vedy useful

https://www.geeksforgeeks.org/accounting-treatment-of-revaluation-of-assets-and-liabilities-change-in-profit-sharing-ratio/

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