Arrange following with regard to determination of Goodwill share of new partner based on hidden Goodwill determination.

(A) Existing partners decided to admit new partner.
(B) Determine new partner share in firm goodwill.
(C) Determine existing capital of all partners, including new partner.
(D) Determine total capital of new firm based on new partner's capital.
(E) Determine goodwill of the partnership firm.

Choose the correct answer from the options given below:

(A), (D), (C), (E), (B)

The correct answer is Option (3) → (A),  (D),  (C),  (E),  (B)

(A) Existing partners decided to admit new partner: This is the starting point where the existing partners make the decision to admit a new partner into the firm.

(D) Determine total capital of new firm based on the new partner's capital: After deciding to admit the new partner, it's crucial to determine the total capital of the new firm, taking into account the capital contribution of the new partner.

(C) Determine existing capital of all partners, including the new partner: Next, the existing capital of all partners, including the new partner, is calculated. This involves considering the capital contributions of both existing and new partners.

(E) Determine goodwill of the partnership firm: Once the total capital is determined, the next step is to calculate the goodwill of the partnership firm. Goodwill is often calculated based on the excess of the new total capital over the tangible assets of the firm.

(B) Determine new partner's share in firm goodwill: Finally, the new partner's share in the firm's goodwill is determined. This is typically based on the agreement among the partners, considering factors such as the new partner's capital contribution, skills, experience, etc.