The journal entry for treatment of goodwill, when a new partner brings his share of goodwill in cash and one of the old partners gains, involves the following:

(A) Gaining Partner’s Capital Account is debited
(B) Premium for Goodwill Account is debited
(C) Sacrificing Partner’s Capital Account is credited
(D) Gaining Partner’s Capital Account is credited
Choose the correct answer from the options given below:

The correct option is (A), (B) and (C) only.

To understand why this option is correct, let us analyze the accounting treatment of goodwill upon the admission of a new partner when one of the existing (old) partners also gains in profit share:
1. Bringing Goodwill in Cash:
When the new partner brings their share of goodwill in cash, the following entry is recorded to bring the cash into the business:
Cash / Bank A/c Dr.
To Premium for Goodwill A/c

2. Adjustment and Distribution of Goodwill:
The premium for goodwill brought in by the new partner is distributed among the sacrificing partner(s). Additionally, if an old partner also gains (i.e., their new profit-sharing ratio is higher than their old ratio), they must compensate the sacrificing partner(s) just like the new partner does. Thus, the gaining old partner's capital account is debited for their share of gain based on the total value of the firm's goodwill.
The journal entry to record this adjustment is:
Premium for Goodwill A/c Dr. (with the new partner's share)
Gaining Partner’s Capital A/c Dr. (with the gaining partner's share of goodwill)
To Sacrificing Partner’s Capital A/c (with the total sacrificing share)

Now, let us evaluate the statements given in the question based on the adjusting journal entry:
- (A) Gaining Partner’s Capital Account is debited: Correct, the gaining partner's capital account is debited to charge them for their share of gain.
- (B) Premium for Goodwill Account is debited: Correct, the premium account is debited to distribute the goodwill brought in by the new partner.
- (C) Sacrificing Partner’s Capital Account is credited: Correct, the sacrificing partner's capital account is credited to compensate them for their sacrifice.
- (D) Gaining Partner’s Capital Account is credited: Incorrect, because the gaining partner is debited, not credited.

Thus, statements (A), (B), and (C) are correct, making (A), (B) and (C) only the correct choice.