Admission of new partner – MCQs

If incoming partner purchases share from an old partner it:

Total proprietorship of the business is increased:

In a firm John’s capital being &40,000 and Harry’s $60,000. Micheal purchased john’s interest for $50,000, the amount of goodwill paid to John will be:

A & B are partners in a firm with capital of $1,00,000 and $1,50,000, C purchased half interest of A for $1,20,000. The amount credited to C’s capital will be:

Goodwill is valued at two years purchased of the average profits of three previous years which are $15,000 the value of goodwill be:

Value of goodwill agreed upon $30,000. C, an incoming partner, purchases 1/4th share of total profit. Goodwill will be raised in the book:

An incoming partner pays his share of goodwill in cash, and profit sharing ratio of old partner is changed, goodwill will be distributed among old partners:

At the time of admission of a new partner the firm is:

At the time of admission, an incoming partner contributes as goodwill: