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 arise.

SOLUTION

In addition to admission, retirement and death of a partner, the need for valuation of goodwill may arise in the following circumstances:
(i) Change in the profit-sharing ratio amongst the existing partners.
(ii) Dissolution of a firm involving sale of business as a going concern.
(iii) Amalgamation of partnership firms.

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