Explanation:
Goodwill is recorded in the books only when some consideration in money or money’s worth is paid for it. Thus, in the context of a partnership firm, the need for valuation of goodwill arises at the time of:
Change in the profit sharing ratio amongst the existing partners
Admission of a new partner
The retirement of a partner
Death of a partner
Dissolution of a firm where business is sold as going concern.
Amalgamation of partnership firms