Question

Why do we debit new partner's capital or current account with the amount of unbrought goowill in case the goodwill amount is partly paid by him ? ( on the admission of a new partner)

Answer 1

Answer:

we always debit new partners current account not capital account because the amount of Goodwill have to pay them to old partners to distribute between themselves in sacrificing ratio because they share there profit ratio after admission of new partner