The amount paid by the new partner on admission as a compensation for the reputation…

Accounts - Principles of Accounts JAMB 2018

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

  • Bonus
  • Good will checkmark
  • Premium
  • Commission

The correct answer is: B

Explanation

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

Previous Question Next Question

Leave A Comment