Question

8. The need for treatment of Goodwill
of
admission of
partner
Compensate the old partner
for their sacrifice​

Answer 1

Answer:

Treatment of Goodwill on the Admission of Partner is done to compensate the sacrificing partners by the new partner who acquires the share in future profits. Payment of premium for goodwill is mode of compensating the sacrificing partners for the sacrifice they make in favor of the new partner.