Question

A/C to be debited when goodwill is written off after the admission of partner​

Answer 1

$</p><p>{\huge{\red{\boxed{\mathbb{\blue{\underline{\blue{A}{\red{N}{\pink{S}{\orange{W}{\red{E}{\purple{R} }}}}}}}}}}}}$

When a new partner is admitted, goodwill of the business is valued afresh. For this, the goodwill that already appears in the books of accounts is written off.

Answer 2

The incoming partner brings in some amount as his share of Goodwill or Premium to compensate the existing partners for the loss of their share in the future profits of the firm. Thus, at the time of admission of a partner, there are following two ways to treat goodwill.