Do you advise that assets and liabilities must be revalued at the time of admission of a partner? If so, why? Also, describe how is this treated in the book of account?

— Kishore V, SME and ACW at Edumarz

When a new partner joins a firm, it is usually advisable to revalue all of the firm’s assets and obligations; only then can a genuine and fair value of the firm be determined.
Furthermore, it must be exercised since the value of certain assets may have grown or decreased, and some obligations may have increased or been paid off. Some assets and obligations may have gone unreported in the past; they must now be registered.
As a result, revaluing assets and liabilities at the time of a partner’s admission is always a good idea, and any profit or loss from the revaluation must be paid to the previous partners’ capital account in their old profit sharing ratio.