When a new partner does not bring his share of goodwill in cash, the amount is debited to which account?

Current A/c of New Partner

The correct answer is option 3- Current A/c of New Partner.

Goodwill not brought by the new partner will be debited to current account of new partner while sacrificing partners' capital accounts will be credited for their respective shares. When the new partner does not bring the share of goodwill, there exists two possibilities :

(a) Goodwill does not exist in the books- When goodwill does not exist in the books, sacrificing partners are credited with their share of goodwill and new partner is debited by the amount of goodwill not brought by him. The journal entry in this case is :

Incoming (New) Partners Current A/c Dr.
      To Sacrificing Partners Capital A/c (individually)
(Account of goodwill not brought in by new partner)

(b) Goodwill exists in the books-  Goodwill appearing in the books will be written-off by debiting old partners ‘capital accounts in their old profit sharing ratio. Thereafter new value of goodwill will be given effect by crediting sacrificing partners' capital accounts and debiting new partners’ current account. The journal entries will be as under :-

(i) When the value of goodwill appears in the books and is written off-
Partners capital A/c (old) Dr. (In profit sharing ratio)
     To Goodwill A/c
(Goodwill appearing in the books written-off)

(ii) For new value of goodwill :-
Incoming partners' current A/c. Dr.
       To Sacrificing partners capital A/c. [In sacrificing ratio) (individually)