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CUET Accountancy 2025 PYQs27 May Shift 1. Free, no login required.

Partnership

past year questions, CUET Accountancy 2025 27 May Shift 1

Admission

past year questions, Partnership, CUET Accountancy 2025 27 May Shift 1

Easy

common

When a new partner brings his share of goodwill in cash, the amount is credited to-

Solution

✅ Correct Option: 1

When a new partner is admitted and brings their share of goodwill in cash, the journal entry is:

Bank A/c ... Dr

To Premium for Goodwill A/c

The Premium for Goodwill Account is credited because this amount represents compensation to the old partners for the goodwill they have built in the firm. This is not part of the new partner's capital contribution - it is an additional payment for their right to share in the future profits of an established business.

The Premium for Goodwill Account is a temporary account that is subsequently transferred to the old partners' capital accounts in their sacrificing ratio (the ratio in which they give up their share of profits to the new partner):

Premium for Goodwill A/c ... Dr

To Old Partners' Capital A/cs

This ensures that the old partners are compensated for sharing the firm's goodwill with the incoming partner.

Note: The Bank Account is debited (not credited) when cash is received. The new partner's capital account is credited only for their actual capital contribution, not for the goodwill premium.

Related questions:

2026: 24 May Shift 1

Match List-I with List-II

List-IList-II
(A) Amalgamation of partnership firms(I) Meaning of Goodwill
(B) Nature of Business(II) Treatment of goodwill
(C) The present value of a firm's anticipated excess earnings(III) Factor affecting goodwill
(D) When the new Partner brings goodwill in cash(IV) Need for valuation of goodwill

Choose the correct answer from the options given below:

2026: 31 May Shift 1

Shubham and Gill are partners in a firm sharing profits in the ratio of 5:3. They admit Hardik as a new partner for 1/7 share in the profit. The new profit sharing ratio will be 4:2:1. What will be the sacrificing ratio of Shubham and Gill?

2026: 23 May Shift 2

For transferring the revaluation loss, which of the following is correct ?

2026: 31 May Shift 1

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

2026: 13 May Shift 1

Aryan and Bala are partners in a firm. The admitted Charu as a partner with 20% share in profits of the firm. Charu brings Rs. 2,00,000 as her share of capital. Calculate the value of Charu's share of goodwill on the basis of her capital, given that the combined capital of Aryan and Bala after all adjustments is Rs. 5,00,000.

2025: 13 May Shift 1

A and N are partners, sharing profits in the ratio 2:1. A's son Ashu was admitted as a partner for 1/4th share, half of which was gifted by A to her son. The remaining was contributed by N. The goodwill of the Firm is valued at 40,000. How much amount will be credited to the old partner's capital account for goodwill?

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CUET Accountancy Past Year Questions (Topic-Wise)