Concept:Goodwill is introduced in partnership accounts when the value of the firm changes due to a change in membership or profit-sharing arrangement.
Explanation:Goodwill is not recorded on a routine basis.
It is brought into the books only at certain key events in the life of a partnership.
Such events include the admission of a new partner.
It also arises on retirement, death, change in profit-sharing ratio, or sale of the business.
Among the options given, only the admission of a new member creates the need to introduce goodwill in the partnership books.
Answer:D. a new member is admitted.