1. When Capital is brought in by new partner.
Cash / Bank A/c … Dr.
To New Partner’s Capital A/c
2. If Goodwill is Brought in By New Partner
Cash / Bank A/c … Dr.
To Goodwill A/c (And)
Goodwill A/c …. Dr.
To Old Partners’ Capital A/c [Sacrifice Ratio]
If Goodwill is Withdrawn by Old Partners then
only this entry will come
Old Partners’ Capital A/c … Dr.
To Cash / bank A/c
OR
If Goodwill is raised in the books
Goodwill A/c … Dr.
To Old Partners’ Capital A/c
If Goodwill is written off
All Partners’ Capital A/c … Dr.
To Goodwill A/c
