CUET Accountancy - Calculate the Normal Rate of Return if normal profit is Rs.30,000, Assets Rs.5,30,000 and liabilities Rs.30,000, while calculating the value of goodwill of the firm at the time of admission of a partner. | PYQs + Solutions

CUET Accountancy 2023 20 June Shift 2

Partnership

Easy

5.6 %

6 %

5.3 %

5 %

✅ Correct Option: 2

Related questions:

30 May Shift 1

Arrange the steps of method, Capitalization of Average for the calculation of goodwill, in the correct sequence:

(A) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalized value of average profits as follows:

Average Profits × 100/Normal Rate of Return

(B) Ascertain the average profits based on the past few years' performance.

(C) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets).

Firms' Capital = Total Assets (excluding goodwill) – Outside Liabilities

Where outside Liabilities include both long term and short term Liabilities

(D) Compute the value of goodwill by deducting net assets from the capitalized value of average profits.

Choose the correct answer from the options given below:

29 May Shift 2

Read the following facts about admission of a partner.

A. A new partner acquires his share from the old partners that reduces the old partners share in profits.

B. The partner's capital must be adjusted so as to be proportionate to their new profit sharing ratio.

C. Assets and Liabilities may be revalued and reassessed on admission of a partner.

D. Adjustment for Reserves and Accumulated profits/loss is done.

E. Profit sharing ratio of existing partners may change on admission of a new partner.

Choose the correct answer from the options given below:

23 Aug Shift 2

From the above calculate amount of Goodwill :

CUET Accountancy 2023 20 June Shift 2 PYQs

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