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On admission of a new partner, the amount of goodwill is based on what?

Answer and explanation

Correct answer: New partner's profit share

The new partner's goodwill is based on the profit share he receives. In exams multiply total goodwill by the new share.

Related tags

GoodwillNew Partner ShareAdmissionGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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