Arrange the following in appropriate sequence regarding the admission of a Partner:

A. Preparation of Revaluation account
B. Partner's Capital Account are completed
C. Preparation of Balance Sheet of New Partnership
D. New Partner brings his share of Capital and goodwill.
E. Transferring the profit/loss on Revaluation to old partners.

Choose the correct answer from the options given below:

A, E, D, B, C

The correct answer is option 4- A, E, D, B, C

A. Preparation of Revaluation account- At the time of admission of a new partner, it is always desirable to ascertain whether the assets of the firm are shown in books at their current values. In case the assets are overstated or understated, these are revalued. Similarly, a reassessment of the liabilities is also done so that these are brought in the books at their correct values. At times there may also be some unrecorded assets and liabilities of the firm. These also have to be brought into the books of the firm. For this purpose the firm has to prepare the Revaluation Account.

E. Transferring the profit/loss on Revaluation to old partners- After the Revaluation Account is prepared, the net profit or loss from the Revaluation Account is allocated to the old partners based on their profit-sharing ratio.  This transfer adjusts the old partners’ capital accounts. 

D. New Partner brings his share of Capital and goodwill- The new partner is required to contribute a certain amount of capital, which increases the partnership’s total capital. The new partner also pays for their share of goodwill, representing the value of the existing partnership. This amount is distributed among the old partners in proportion to their sacrificing ratio.

B. Partner's Capital Account are completed- Once the revaluation and new capital contributions are recorded. The capital accounts of the old partners are adjusted to incorporate the profits or losses from the Revaluation Account and the goodwill received from the new partner. This results in the final balances of the old partners' capital accounts, reflecting their adjusted equity in the partnership after the new partner’s admission.

C. Preparation of Balance Sheet of New Partnership- Finally, a new balance sheet is prepared. The balance sheet will list all assets (including revalued amounts) and liabilities accurately, reflecting the current financial position of the partnership. The new partner’s capital contribution is included in the liabilities section, indicating their equity in the partnership.