Admission by Investment
Accounting glossary · Understand, connect, apply
Admission by investment occurs when a new partner contributes resources directly to the partnership in exchange for a partnership interest.
Example
A new partner contributes $10,000 cash to the firm, increasing partnership assets and total capital before any agreed capital reallocations.
Remember the difference
The new capital credit may differ from cash contributed under a permitted bonus or other agreed approach. Follow the agreement and relevant accounting requirements.
Updated 3 November 2026. Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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