A partner is admitted and the following steps are to be followed while calculating his share of goodwill. Arrange them in a sequence:
(A) Calculate new partner’s share of goodwill
(B) Calculate total capital of the newly constituted firm
(C) Calculate actual capital of all the partners
(D) Calculate goodwill of the firm
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) →
(B), (C), (D), (A)