Partnership

Admission

Medium

Arrange the following steps to calculate value of Goodwill by capitalization method of super profit in a proper sequence.

A. Calculate normal profit on capital employed

B. Actual Profits - Normal Profits = Super Profit

C. $\frac{super\ profit \times 100}{Normal\ rate\ of\ returns}$

D. Calculate actual profits on capital employed

Choose the correct answer from the given options

B, C, D, A

A, C, D, B

A, B, C, D

A, D, B, C

✅ Correct Option: 4

Under capitalization of super profit method, the logical flow is: first compute normal profit on capital employed (A), then compute actual profits on capital employed (D), then derive super profit as Actual minus Normal (B), and finally capitalize it using the formula super profit times 100 divided by normal rate of return (C). Correct sequence: A, D, B, C.

2023: 20 June Shift 2

Arrange the following statements in proper sequence in context of admission of partner.

A. Finalising terms for admission of new partner

B. Calculation of sacrificing/ gaining ratio

C. Finalising balance in partner's capital A/c

D. Calculation of new profit sharing ratio

E. Valuation and adjustment of goodwill

Choose the correct answer from the options given below:

2025: 13 May Shift 2

In case normal profit is Rs 60,000 then what will be the normal rate of return?

2026: 21 May Shift 1

Kapil, Rahul and Virat are partners in a firm sharing profits in the ratio of 3:2:1. They decide to share future profits equally w.e.f April 1, 2025. Calculate the gaining/sacrificing share of partners.

2026: 23 May Shift 2

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	Average Profit	I. Average profit - Normal profit
B.	Super Profit	II. Super Profit x No. of Years of Purchases
C.	Super Profit Method	III. Total Profit/ No. of Years
D.	Capitalised Value	IV. Average Profit x 100/ Normal Rate of Return

Choose the correct answer from the options given below:

2026: 11 May Shift 1

Match the LIST-I with LIST-II

	LIST-I (Journal Entries)		LIST-II (Revaluation of Assets and Reassessment of Liabilities)
A.	Asset A/c Dr. To Revaluation A/c	I.	For reduction in the amount of a liability
B.	Old Partner's Capital A/c Dr. To Revaluation A/c	II.	For unrecorded liability
C.	Liability A/c Dr. To Revaluation A/c	III.	For an unrecorded asset
D.	Revaluation A/c Dr. To Liability A/c	IV.	For transferring loss on revaluation

Choose the correct answer from the options given below:

2025: 30 May Shift 2

At the time of admission of a new partner, general reserve appearing in the old balance sheet is transferred to:

Solution

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