In admission chapter when do a patner does not brings goodwill when do we take out from cuurent a/c. How would we get to know from current or capital should be used

Dear Student


In case the incoming partner does not bring his share of goodwill on admission then the adjustment of goodwill is done by debiting his current account and crediting other partners capital account as per sacrificing and gaining ratios.

Journal entry :
 

Journal in the books
Date	Particulars		Debit	Credit
	New Partner's Current A/c	Dr.	xxx
	To Sacrificing Partner's Capital A/c			xxx
	(Being new partner unable to bring his share of goodwill in cash, so adjustment is done by opening his current account)

Regards