The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is a?

By: |Published on: Nov 28|Categories: Accounting JAMB| 0 comments

A. Bonus
B. Good will
C. Premium
D. Commission

Correct Answer:

Option B – Good will

Explanation

Goodwill is the excess of the purchase consideration over the total value of an entity

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