Question

Which of the following assets is compulsorily revalued at the time of admission of a new partner?

• A. Stock
• B. Fixed Assets
• C. Investment
• D. Goodwill

Hint:

Goodwill is always adjusted on admission, retirement, or death of a partner to ensure fair compensation.

Answer 1

The Correct Option is D

Step 1: Revaluation at admission.
When a new partner is admitted, all assets and liabilities may be revalued. But one asset that is always adjusted is Goodwill.
Step 2: Reason.
Goodwill ensures that existing partners are compensated for the reputation and profits earned by the firm before the admission of the new partner.
Step 3: Conclude.
Thus, at admission, Goodwill is compulsorily revalued/adjusted.
Final Answer: \[ \boxed{\text{Goodwill}} \]