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