Question

Why the valuation of Goodwill is required. Give atleast three reasons​

Answer 1

Answer:

★ Valuation of Goodwill is required when :

• Change in the profit sharing ratio amongst the existing partners

• Admission of a new partner

• The retirement of a partner

• Death of a partner

• Dissolution of a firm where business is sold as going concern.

• Amalgamation of partnership firms