Valuation of goodwill is not done in which of the following case?

The correct answer is option 4- Purchasing of raw material.

Valuation of goodwill is not done in Purchasing of raw material.

Goodwill is an intangible asset that represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. Normally, the need for valuation of goodwill arises at the time of sale of a business. But, in the context of a partnership firm it may also arise in the following circumstances:

• 1. Change in the profit sharing ratio amongst the existing partners;
• 2. Admission of new partner;
• 3. Retirement of a partner;
• 4. Death of a partner;
• 5. Dissolution of a firm involving sale of business as a going concern. 
• 6. Amalgamation of partnership firms.