JAMB Accounting 2013 Objective — Question 33

Question 33 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2013 Objective paper, with the correct answer and a full explanation.

The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is

A. bonus
B. commission
C. premium
D. goodwillCorrect

Explanation

Goodwill is the reputation built by an organisation; if a new partner is admitted, such reputation is paid for.

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