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State 'True' or 'False'The goodwill brought in by a new partner is shared by the old partners.OptionsTrueFalse |
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Answer» True Explanation: Goodwill brought in by a new partner is shared by the old partners in their sacrificing ratio. At the time of admission, the new partner acquires the right to share future profits; so, in exchange, he/she should compensate the sacrificing partners. Such compensation is known as premium for goodwill. |
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