Home › Bihar Board Class 12 (Commerce) › Accountancy › Reconstitution of a Partnership Firm › Which event calls for valuing goodwill in a firm?
Which event calls for valuing goodwill in a firm?
APaying an electricity bill
BBuying office stationery
CChange in profit ratio
DOpening a bank account
Answer & Solution
Correct answer: C. Change in profit ratio
Valuation of goodwill is needed when partners change their sharing ratio, as one partner gains and another sacrifices.
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