Admission of New Partner: Fill In the Blanks
An intangible asset related to the reputation of a business is known as
A new partner can be admitted into a partnership with the
of all partners.
The goodwill of a business can be sold only by
Technically, the admission of a new partner
the old partnership
An incoming partner contributes
to share in the total assets and
for future profits.
Excess of the proportionate investment is the cost of
for the old partners.
Market value of the business - Net worth of the business =
Under the goodwill method, goodwill is shown on the
Goodwill is distributed among old partners according to the
income sharing ratio.
A new partnership deed is
when an amalgamation of firms takes place.
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.