Question

Why should a new partner contribute towards goodwill on his admission ? ​

Answer 1

hey mate

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Due to admission of a new partner, old partners have to share their part in their value of goodwill created till date. Hence they (old) partners wants contribution from new partner for their compromise in the value of goodwill for new partner. New partner would compensate to old partners in their sacrificing ratio.

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hope it helps

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Answer 2

$\huge\mathbb\red{QUESTION}$

•Why should a new partner contribute towards goodwill on his admission ?

$\huge\mathbb\red{ANSWER}$

At the time of admission of a partner, the incoming partner brings in an extra amount to compensate the existing partners for their loss in the super profits because of the addition of his share in the profits of the firm. This additional amount is termed as the premium for goodwill and is distributed among the old partners in the sacrificing ratio.