Partnership

Admission

Easy

At the time of admission of partner if goodwill exist in the books of account it will be written off among:

Old partners in sacrificing ratio

All the partners in new ratio

New partners in gaining ratio

Old partners in old profit sharing ratio

✅ Correct Option: 4

Existing goodwill in the books at the time of admission must be written off among the old partners only in their old profit sharing ratio, since it was built up before the new partner joined. Entry: Old Partners' Capital A/c Dr. To Goodwill A/c.

2026: 21 May Shift 2

Priya, Rama and Sona are partners in a firm sharing profits and losses equally. They decided to share the profits 3:3:2 w.e.f. April 1, 2025. Calculate gain or sacrifice of partners.

2025: 27 May Shift 2

________ is the value of the reputation of a firm in respect of the profits expected in future over and above the normal profits.

2025: 15 May Shift 1

The steps involved in calculation of Goodwill under Super Profit method are:

(A) Calculate the super profits by deducting normal profit from the average profits.

(B) Calculate the normal profit on the firm's capital on the basis of the normal rate of return.

(D) Calculate goodwill by multiplying the super profits by the given number of years' purchase.

Choose the correct sequence of steps from the options given below:

2025: 31 May Shift 1

Match List-I with List-II

List-I	List-II
Method of Valuation of Goodwill	Formula
(A) Average profit method	(I) Goodwill = Super profit × No. of years purchased
(B) Super Profit Method	(II) Goodwill = capitalized value of average profit - actual firm's capital.
(C) Capitalization of super profit method	(III) Goodwill = Average Profits × No. of years purchased
(D) Capitalization of average profit method	(IV) Goodwill = (Super profit/ Normal Rate of Return) × 100

Choose the correct answer from the options given below:

2026: 13 May Shift 2

Arrange the following steps in the correct sequence when hidden goodwill is adjusted through capital accounts in case of admission of a partner:

(A) Compare capital required with actual capital.

(B) Calculate firm's total capital on the basis of new partner's share.

(D) Determine new profit sharing ratio.

Choose the correct answer from the options given below.

2022: 20 Aug Shift 2

Valuation of Goodwill takes place on which of the following occasions:

A. Incorporation of a new business

B. Change in profit sharing ratio

C. Amalgamation of partnership firm

D. Admission of a partner

E. Dissolution of firm or closure of business

Choose the correct answer from the options given below:

At the time of admission of partner if goodwill exist in the books of account it will be written off among:

Solution

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