The Total solution for NCERT class 6-12
When the new partner is not in a position to bring his share of goodwill in cash, then goodwill account is adjusted through the old PartnersтАЩ Capital Account. New PartnerтАЩs Capital Account or Current Account is debited with his/her share of goodwill and the partners who sacrifice their share in favour of the new partner are credited in their sacrificing ratio. The following Journal entry is passed in the books of accounts.