In which of the following case the need for the valuation of goodwill in a firm may arise?
(I) Admission of new partner
(II) While changing profit sharing ratio
(III) Retirement of partner
(IV) Death of partner
Select the correct answer from the options given below-

(I) & (III) only

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(I), (III) & (IV)

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(I), (II) & (III) only

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All (I) to (IV)

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Solution

The correct option is D All (I) to (IV)
In all these cases one partner sacrifice and the other partner gain. Gaining partner must compensate the sacrificing partner by paying the proportionate amount of goodwill. Gaining partner should pay the sacrificing partner that share of goodwill which is equal to the share gained by him. Valuation is done to calculate that share.

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Similar questions

Q. State any three circumstances other than (i) admission of a new partner, (ii) retirement of a partner and (iii) death of a partner, when need for valuation of goodwill of a firm may raise.

Question 1

Which of the following parts of our body help us in movement?
(i) Bones
(ii) Skin
(iii) Muscles
(iv) Organs

Choose the correct answer from the options below.
(a) (i) and (iii)
(b) (ii) and (iv)
(c) (i) and (iv)
(d) (iii) and (ii)

Question 3
Given below are events that lead to pregnancy and development of embryo

(i) Fertilization of egg
(ii) Maturation of egg
(iii) Release of egg
(iv) Embedding of embryo in thickened uterine wall.

Which of the following options gives the correct order of sequence in which they occur?

(a) i, ii, iii, iv
(b) ii, i, iii, iv
(c) i, iv, ii, iii
(d) ii, iii, i, iv

Q. Which of the following securities can be forfeited for non-payment of allotment or call money?
(I) Equity Shares
(II) Equity Shares, Preference Shares
(III) Preference Shares, Equity Shares & Debentures
(IV) Debentures
Select the correct answer from the options given below -

Q. Which of the following security can be forfeited for non-payment of allotment or call money?
(I) Equity Shares
(II) Equity Shares, Preference Shares
(III) Preference Shares, Equity Shares & Debentures
(IV) Debentures
Select the correct answer from the options given below :-

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In which of the following case the need for the valuation of goodwill in a firm may arise?(I) Admission of new partner(II) While changing profit sharing ratio(III) Retirement of partner(IV) Death of partnerSelect the correct answer from the options given below-

In which of the following case the need for the valuation of goodwill in a firm may arise?
(I) Admission of new partner
(II) While changing profit sharing ratio
(III) Retirement of partner
(IV) Death of partner
Select the correct answer from the options given below-