What enteries will be made if goodwill is not brought in cash by new partner, recorded in the books and immediately written off
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Journal entry
Replies (2)
If Goodwill is not brought by new partner then it will adjusted throgh his capital account.
Goodwill a/c Dr
To Old partners (Old Ratio)
All partners capital a/c (Including new partner) new ratio DR
To Goodwill account
Or a single entry can be passed
New partner's capital account DR
to Old partners cappital A/c (Secrifice ratio)
please let me know if you have any question.
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