Question

when goodwill amt not bring by new partner nor bring the amount of captal .how will you treatment?

when goodwill amt not bring by new partner .how will you treatment?

In the Capital adjustment new partner not bring the amount of goodwill .how will u treat?

Answer 1

Case (a)

It is generally not possible that a partner is admitted and that partner (incoming) is not contributing anything to compensate the old partners'. It is quite likely that a partner (new) might not bring his share of goodwill in cash wholly or partially. But he has to certainly contribute something towards his Capital (in cash or kind) for being a partner in the firm.

Case (b)

When a partner does not bring his share of goodwill in cash then the following journal entry is recorded.

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	New Partner’s Capital A/c	Dr
	To Sacrificing Partners’ Capital A/c
	(Capital A/c of sacrificing partners’ credited in sacrificing ratio for incoming partner’s share of goodwill on the admission)

Case (c)

When the incoming partner is not in a position to bring in his share of goodwill in cash and the old partners' capitals are to be adjusted on the basis of new partner's capital. In that case, the Current A/c of the new partner is debited (to keep his capital intact) with share of goodwill not brought by him. The journal entry is as follows:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	New Partner’s Current A/c	Dr
	To Sacrificing Partners’ Current A/c
	(Current A/c of sacrificing partners’ credited in sacrificing ratio for incoming partner’s share of goodwill on the admission)