Valuation of Goodwill takes place on which of the following occasions:A. Incorporation of a new businessB. Change in profit sharing ratioC. Amalgamation of partnership firmD. Admission of a partnerE. Dissolution of firm or closure of businessChoose the correct answer from the options given below:
- AA, B and D only
- BB, C and D only
- CA, C, D only
- DA, B, E only
Solution & Step-by-step Explanation
Goodwill valuation in a partnership firm is required when there is a change in its constitution, such as Change in Profit Sharing Ratio (B), Amalgamation of firms (C), Admission of a partner (D), or Retirement/Death of a partner.