Arrange the following regarding admission procedure in the correct sequence.

(A) Giving share to the new partner.

(B) Treatment of Goodwill

(C) Calculating new profit sharing ratio & sacrificing ratio

(D) Preparation of Revaluation A/c

(E) Preparing Partner's Capital A/c and Balance Sheet

Choose the correct answer from the options given below:

The correct option is (A), (C), (B), (D), (E).

When a new partner is admitted into a partnership firm, a structured sequence of accounting steps is followed to reconstruct the partnership. The logical sequence of these steps is explained below:

1. Giving share to the new partner (A):
The first step in the admission procedure is to determine and agree upon the share of profits that will be given to the incoming partner.

2. Calculating new profit sharing ratio & sacrificing ratio (C):
Once the new partner's share is decided, the next immediate step is to compute the new profit sharing ratio for all partners and the sacrificing ratio of the old partners. The sacrificing ratio is crucial because it determines how the existing partners will be compensated for giving up a portion of their profits.

3. Treatment of Goodwill (B):
Goodwill brought in by the new partner represents compensation to the existing partners for sacrificing their profit shares. Hence, the treatment and distribution of goodwill are done in the sacrificing ratio calculated in the previous step.

4. Preparation of Revaluation Account (D):
Before finalizing the capital accounts, the assets and liabilities of the firm are revalued to ensure that any gain or loss up to the date of admission is shared only by the old partners. The profit or loss from this Revaluation Account is transferred to the old partners' capital accounts.

5. Preparing Partner's Capital Account and Balance Sheet (E):
After adjusting for goodwill, revaluation, and accumulated profits or losses, the final balances of the Partners' Capital Accounts are calculated. Finally, a reconstructed Balance Sheet of the new firm is prepared, showing the updated values of all assets, liabilities, and capital balances.