There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Goodwill is calculated on the admission of any new partner only.
Reason (R):  In the case of retirement of any old partner, no treatment of goodwill is done because they were already present in the business.

Assertion (A) is true, but Reason (R) is False

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