At the time of a firm's reconstitution, any existing asset balance of Goodwill already appearing in the books of accounts must be immediately written off among partners in their:

Purchased goodwill previously sitting as an asset in the balance sheet must be wiped out/written off whenever reconstitution takes place. This book value is distributed among all old existing partners in their Old Profit Sharing Ratio by debiting partners' capital accounts and crediting the Goodwill account.