When is writing the method of valuation of goodwill in the deed most useful?

Correct answer: At admission, retirement or death

Goodwill represents the value of a firm’s reputation and expected future earning capacity. Its valuation becomes especially important when the constitution of the firm changes, such as when a new partner is admitted, an existing partner retires, or a partner dies. The deed can prescribe a method, such as the average-profit, super-profit or capitalisation method, so that the amount is determined consistently and disputes are reduced. Daily cash sales, bank reconciliation and purchase orders do not normally require a partnership goodwill valuation. Therefore option A is correct.