Which of the following assets is compulsorily revalued at the time of admission of a new partner ?
Which of the following assets is compulsorily revalued at the time of
admission of a new partner ?
Goodwill
Correct Answer
Option D — Goodwill
Why option D is correct:
At the time of admission of a new partner, Goodwill is compulsorily revalued to determine the sacrifice made by the existing partners.
The new partner must compensate the old partners for their share of goodwill, so its valuation is essential.
Hence, Option D is correct.
Why other options are incorrect:
A. Stock — Incorrect
Stock is revalued only if its value has changed, not compulsorily.
B. Investment — Incorrect
Investments are revalued only when required, not mandatory.
C. Fixed Assets — Incorrect
Fixed assets may or may not be revalued; it depends on agreement.
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