Discuss How is goodwill brought in by an incoming partner treated in books of account? explain How is goodwill treated when incoming partner does not bring his share of goodwill in cash
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If Brings in Cash
Cash Dr.
To Premium for Goodwill
Then,
Premium for Goodwill Dr.
To Sacrificing Partner's Capital
If does not bring in cash
NEW Partner's Current A/C Dr.
To Sacrifing Partners Capital
Cash Dr.
To Premium for Goodwill
Then,
Premium for Goodwill Dr.
To Sacrificing Partner's Capital
If does not bring in cash
NEW Partner's Current A/C Dr.
To Sacrifing Partners Capital
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