From the following information, identify when goodwill is required to be calculated.(a) Admission of a Partner(b) Amalgamation of partnership firms(c) Dissolution of partnership firm(d) Retirement and Death of any partner(e) Preparation of Balance sheetChoose the correct answer from the options given below:
- A(a), (c), (d) only
- B(a), (d), (e) only
- C(a), (b), (d) only
- D(b), (c), (d) only
Solution & Step-by-step Explanation
Goodwill calculation is necessary during reconstitution of a partnership, which includes the admission of a partner, amalgamation of firms, and retirement/death of a partner. It is generally not calculated during dissolution (where it's simply realized) or normal Balance Sheet preparation.