Goodwill can be created in the books of a partnership firm when

A.

The partnership experiences super profit

B.

A new member is admitted

C.

The business is being expanded

D.

The business suffers high loss

Correct answer is A

The partnership experiences super profit: super profit is the profit that is generated by intangible asset or the profit that is attributed by the tangible asset when such profit is capitalized we get intangible asset or goodwill