The goodwill brought in by the new partner is distributed by old partner their:

Which account is credited if the value of net assets exceeds purchase consideration at the time of purchase of business?

For computing Goodwill by capitalisation of Average Profit method, the following sequence would be followed:

A. Capitalise the average profit on the basis of Normal Rate of Return

B. Ascertain the firm's Capital - Total Assets - Outside Liabilities

C. Ascertain the average profits based on past years' performance

D. Compute the volume of Goodwill

Choose the correct answer from the options given below:

A, B and C are partners in a firm. If D is admitted as a new partner then:

Anil and Bharat are partners in a firm with capitals of Rs. 18,00,000 and Rs. 12,00,000 respectively. Normal rate of return is 15% and goodwill calculated at 2 years' purchase of super profits is valued at Rs. 6,00,000. The average profits of the firm would be:

Dinesh, Ramesh and Suresh are partners in a firm sharing profits and losses in the ratio of 3:3:2. They decided to share the profits equally w.e.f. April 1, 2025. On that date, sundry debtors of Rs. 60,000 and stock of Rs. 1,20,000 appeared in the balance sheet. A provision of 5% on sundry debtors be made for doubtful debts. The value of stock be reduced to Rs. 1,12,000. The gain or loss on revaluation would be:

Rajni and Ravi are partners in a firm sharing profits in the ratio of 4:1. On April 15, 2025 they admit Meera as a new partner. On that date, there was a balance of Rs. 20,000 in the General Reserve and a credit balance of Rs. 30,000 in the Profit And Loss Account of the Firm. Necessary Journal Entry for this would be: