Which account will be debited, in case new partner is unable to bring his/her share of goodwill in cash? |
All Partners' Capital A/c New Partners' Loan A/c New Partners' Current A/c All Partners' Current A/c |
New Partners' Current A/c |
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. Sometimes the new partner brings part of premium for goodwill in cash. In such a situation, new partners current account will be debited by the amount not brought by new partner. |