Accountancy Part AAdmission of a Partner

At the time of admission of a new partner, for getting right to share…

At the time of admission of a new partner, for getting right to share the assets of the partnership firm, the new partner at least will bring :-

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Amount of his capital.

A new partner acquires two rights: a share in the assets of the firm and a share in its future profits. For the right in the assets he brings an agreed amount of capital, in cash or in kind. The premium for goodwill is a separate payment, made in an established firm for the share in profits it earns above normal; it is not what buys the right in the assets.

Option (1) Amount of his loan. — Incorrect. A loan makes him a creditor of the firm, not an owner of its assets.

Option (2) Amount of his capital and amount of his Premium for Goodwill. — Incorrect. Capital plus premium covers both rights; the question asks the least he must bring for the right in the assets, which is the capital alone.

Option (3) Amount of his Premium of Goodwill. — Incorrect. Premium for goodwill compensates the old partners for their sacrifice of profit; it gives no right in the assets.

NCERT (2026-27 edition):
Admission of a New Partner – “… For the right to acquire share in the assets and profits of the partnership firm, the partner brings an agreed amount of capital either in cash or in kind. Moreover, in the case of an established firm which may be earning more profits than the normal rate of return on its capital the new partner is required to contribute some additional amount known as premium or goodwill.”