Assertion: If goodwill is not brought in cash, it can be adjusted only through the new partner's capital account.

Reason: The adjustment will reduce the capital of the partner.

Explanation:

Goodwill is an intangible asset that represents the reputation, customer base, brand value, and other non-physical assets of a business. When a new partner joins a partnership firm, the value of the firm's goodwill may increase, and the new partner may have to pay for their share of the goodwill. However, if the new partner does not bring in cash to pay for their share of the goodwill, the adjustment can only be made through their capital account.

The assertion is correct because the adjustment for the new partner's share of goodwill cannot be made through any other account except the capital account. Goodwill is not a tangible asset, and therefore, it cannot be adjusted through any other account such as the cash account, bank account, or any other account. The only account that can be adjusted in this case is the capital account of the new partner.

The reason is also correct because the adjustment for the new partner's share of goodwill will reduce their capital in the partnership firm. When the new partner's capital account is adjusted for their share of goodwill, the value of their capital account will decrease, and their ownership in the partnership firm will also decrease.

In summary, if a new partner joins a partnership firm and does not bring in cash to pay for their share of goodwill, the adjustment for their share of goodwill can only be made through their capital account. This adjustment will reduce their capital in the partnership firm.

No. Both the assertion and reason are wrong.
because - whether the partner bring Goodwill in kind or if he is not able to bring Goodwill it adjusted through its current account and it doesn't effect the capital of New partner