Important Journal Entries for Admission of a Partner.

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If Goodwill is Withdrawn by Old Partners then 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