Goodwill brought in cash by new partner distributed among old partners in their sacrificing ratio
Goodwill brought in cash by a new partner is not directly distributed among old partners in their sacrificing ratio. Instead, it affects the accounting treatment of the partnership.

Accounting treatment of goodwill brought in cash
- When a new partner brings in cash as goodwill, it is recorded in the books of the partnership as a capital contribution by the new partner.
- This cash amount is not distributed among the old partners but is used to increase the total capital of the partnership.

Impact on old partners
- The entry of cash brought in as goodwill by the new partner will affect the total capital of the partnership.
- The sacrificing ratio of the old partners may change as a result of the new partner's capital contribution.
- The sacrificing ratio determines how profits and losses are shared among the partners, and it is adjusted to reflect the new partner's capital contribution.

Adjustment in sacrificing ratio
- The sacrificing ratio is recalculated to ensure that the new partner's capital contribution is appropriately recognized in the profit-sharing arrangement.
- The old partners may need to adjust their capital or profit-sharing ratios to accommodate the new partner's contribution.

Conclusion
In conclusion, while the cash brought in as goodwill by a new partner is not directly distributed among old partners, it does impact the partnership's accounting treatment and may result in adjustments to the sacrificing ratio of the old partners.