When a new partner is not in a position to bring their share of goodwill in cash, the amount is adjusted through the partner's capital and current accounts. The fundamental principle is that the new partner must compensate the sacrificing partners for their share of the firm's reputation. Since cash is not received, the new partner's account is debited to reflect the liability.

In this scenario, the Goodwill amount not brought by the new partner is debited to the New Partner's Current Account. Correspondingly, the Sacrificing Partners' Capital Accounts are credited for their respective shares. This ensures that the new partner does not benefit from the profit share attributable to the goodwill earned before admission without making the necessary payment.

Specifically, when goodwill does not exist in the books, the journal entry recorded is: Incoming (New) Partner's Current A/c is debited To Sacrificing Partners' Capital A/c (individually). This entry accounts for the goodwill not brought in by the new partner and transfers the value to the old partners based on their sacrifice.

If the new partner brings only a part of the premium for goodwill in cash, the portion not brought in cash is still debited to the New Partner's Current Account. The sacrificing partners are credited with their full share of goodwill, ensuring the proper distribution of the premium among the existing partners in their sacrificing ratio.