CUET Accountancy - Arrange the Following Steps to Calculate Goodwill under the Super Profits Method- (A) Calculate the normal profit on the firm's capital on the basis of the normal rate of return (B) Calculate the average profit (C) Calculate the super profits by deducting normal profit from the average profits (D) Calculate goodwill by multiplying the super profits by the given number of years' purchase Choose the correct answer from the options given below: | PYQs + Solutions

CUET Accountancy 2025 26 May Shift 2

Partnership

Medium

common

(A), (C), (D), (B)

(B), (D), (A), (C)

(B), (A), (C), (D)

(C), (B), (D), (A)

✅ Correct Option: 3

Related questions:

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:

27 May Shift 2

The profit or loss on revaluation of assets and liabilities are distributed in

14 May Shift 1

At the time of admission of a partner, undistributed profits appearing in the balance sheet of the old firm is transferred to the capital account of:

CUET Accountancy 2025 26 May Shift 2 PYQs