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Question
State 'True' or 'False'
The goodwill brought in by the new partner is shared by all partners.
Options
True
False
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Solution
False
Explanation: Goodwill brought in by the new partner is shared only by the old partners in their sacrificing ratio. The new partner has no right on goodwill brought in by him.
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RELATED QUESTIONS
State any three circumstances other than (i) admission of a new partner; (ii) retirement of a partner and (iii) death of a partner, when need for valuation of goodwill of a firm may arise.
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| Amount | 28,000 | 27,000 | 46,900 | 53,810 |
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| ? | = | `"Total Profit"/"Number of Years"` |
