Treatment of goodwill

CASH/BANK A/C DR.

             TO GOODWILL A/C

BECAUSE GOODWILL CAN'T BE CONSIDER AS CAPITAL.

cash/bank a/c   dr

          to goodwill

It's is possible that new partner take consolidated capital and there after transfer it as goodwill.

It depends of whether partners want to show goodwill in books or not.

If they want to show goodwill

Cash a/c Dr 

To new partner a/c

goodwill a/c Dr

to old partner's capital a/c(sacrificing ratio)

If they don't want to show goodwill

cash a/c Dr

to new partner's capital a/c

new partner's capital a/c Dr

To old partner's capital a/c (sacrificing racio)

dear khatri

in ur reply u had given 

if goodwill is to show in a/cs'

then how the new partner a/c will be debited against his goodwill contribution

is any additional journal entry is required... pl.clarify

plz reply fastttttttttt

I will reply to tomorrow on this matter...

Cash A/c ....dr

           To Goodwill a/c

is the correct entry... 

I am giving below the link where you can find the full treatment of goodwill on admision of a partner.

https://www.jbsclasses.com/187/journal-for-treatment-of-goodwill

If a new partner does not bring goodwill in cash then

goodwill a/c dr

To old partner's capital a/c (in sacrificing ratio)

If a new partner brings cash as goodwill

cash a/c dr

To New Partner a/c

New partner a/c Dr

to old partner capital a/c (in sacrificing ratio)

(I have done some mistake in first reply.)