Reconstitution of a Partnership Firm – Admission of a Partner

Sacrifice by a partner = Old Share of Profit − New Share of Profit

Goodwill = Average Profits × No. of years purchased

Average Profit = Total Profit of Last n Years / No. of years

Weighted Average Profit = Sum of (Profit × Weight) / Sum of Weights

Super Profit = Average Profits − Normal Profits

Goodwill = Super Profits × Number of years' purchase