The incoming partner who acquires his share in the profits of the firm from the existing partners brings in additional amount to compensate them for loss of their share in.......... profits. It is termed as his.............

Super, Premium for goodwill

The correct answer is option 3- Super, Premium for goodwill.

The incoming partner who acquires his share in the profits of the firm from the existing partners brings in additional amount to compensate them for loss of their share in super profits. It is termed as his share of goodwill (also called premium for goodwill).  The amount of premium brought in by the new partner is shared by the existing partners in their ratio of sacrifice. If this amount is paid to the old partners directly (privately) by the new partner, no entry is passed in the books of the firm. But, when the amount is paid through the firm, which is generally the case, the various journal entries are passed.