When shares are issued to promoters for the services offered by them, the nominal value of the shares is debited to the Goodwill account.

Explanation:

1. Definition of Promoters:
Promoters are individuals or entities who take the initiative to form a company and bring it into existence. They play a crucial role in the incorporation and initial setup of the company. Promoters are responsible for various activities such as raising capital, structuring the company, and ensuring its smooth functioning.

2. Shares Issued to Promoters for Services:
Sometimes, promoters are compensated for their efforts and services in the form of shares. These shares are issued to the promoters as a consideration for the services they have provided during the formation of the company. The value of these shares is determined based on various factors such as the expertise and experience of the promoters, the value of the services provided, and the market conditions.

3. Debiting the Nominal Value of Shares to Goodwill Account:
When shares are issued to promoters, the nominal value of these shares is debited to the Goodwill account. Goodwill represents the value of the reputation, brand, and customer loyalty that a company has built over time. It is an intangible asset and is recorded on the balance sheet.

4. Reason for Debiting the Nominal Value to Goodwill:
The reason for debiting the nominal value of shares to the Goodwill account is that the shares issued to promoters are considered as part of the consideration for their services. By debiting the Goodwill account, the company recognizes the value of the services provided by the promoters and reflects it as an intangible asset on the balance sheet.

5. Treatment of Goodwill in the Accounting Records:
Goodwill is an intangible asset and is recorded on the balance sheet. It is not amortized but is subject to periodic impairment testing. If the value of goodwill is impaired, it is written down and charged to the income statement as an expense.

In conclusion, when shares are issued to promoters for the services offered by them, the nominal value of the shares is debited to the Goodwill account to recognize the value of the services provided. Goodwill is an intangible asset that represents the reputation and customer loyalty of a company.