If Goodwill does not appears in the books (self Generated Goodwill), and there is a admission of new partner for 1 by 4th share of profit. He brings nothing as the premium. Now old partners decide to show g/w in the books. Entry for this will be:
G/W A/c Dr. 10000 (say)
To A's capital a/c 6000
To B's capital a/c 4000
Now I want to ask why the incoming partner is not debited for his liability . If in this case g/w would be written off , in that case the capital a/c of incoming partner would have been debited . Then why not in this case?
CAclubindia
