In cash accounting, goodwill is generally not recognized or recorded as it's an intangible asset that represents the excess of the purchase price over the fair market value of the identifiable assets and liabilities acquired in a business combination. Cash accounting is a method of accounting where transactions are recorded when cash is received or paid, rather than when they are incurred.

However, if you're referring to a situation where a new partner is unable to contribute cash or assets equivalent to the value of their share of the goodwill when joining a partnership, it could have implications for the partnership's financial arrangements and the capital accounts of the partners. Here are some considerations:

Adjustment to Capital Accounts:

• If the new partner cannot bring in cash or assets to cover their share of the goodwill, the existing partners may need to decide how to handle this situation. One option is to adjust the capital accounts of the existing partners to reflect the new partner's share of the goodwill and debit new partner current A/C