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Why should a new partner contribute towards goodwill on his admission? - Accounts

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प्रश्न

Why should a new partner contribute towards goodwill on his admission?

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उत्तर

When a new partner joins a partnership, they receive a share of the profits from the existing partners. To account for this, the new partner compensates the old partners for the share of profits that they have to give up. This compensation is known as goodwill.

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  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 3: Admission of a Partner - SHORT ANSWER QUESTIONS [पृष्ठ ३.१४७]

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डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
पाठ 3 Admission of a Partner
SHORT ANSWER QUESTIONS | Q 2. | पृष्ठ ३.१४७
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