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What does it mean if a bonus is given to the new partner?

Answer and explanation

Correct answer: Old partners gave profit share without adequate compensation

When the new partner pays less but gets more share, he gains. This bonus is linked with old partners' sacrifice.

Related tags

Bonus To New PartnerGoodwillConceptGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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