Das and Sinha are partners in a firm sharing profits in 4:1 ratio. They admitted Pal as a new partner for 1/4th share in the profits, which he acquired wholly from Das. The new profit sharing ratio of the partners is-

Goodwill, if existing in the books of the firm, is written off at the time of admission of a partner, and is:

On the admission of a new partner increase in the value of assets is debited to:

In case normal profit is Rs 60,000 then what will be the normal rate of return?

Sometimes, at the time of admission, the partners agree that their capitals should also be adjusted so as to be proportionate to their profit sharing ratio (if the capital of the new partner is not given). Arrange the following steps in a correct sequence.

(A) Ascertain combined capital of old partners after all adjustments like interest on capital, salary etc.

(B) Ascertain new capital of all partners

(C) Ascertain necessary amount to cover the shortage and withdraw the excess amount of capital of partners

(D) Ascertain total capital of the firm on the basis of combined capital of old partners

Choose the correct answer from the options given below:

A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return in a similar business is 25%. Ascertain the value of goodwill by capitalisation of average profits method, given that the value of net assets of the business is Rs. 3,20,000.

At the time of admission, the new partner brings in additional amount in the form of goodwill. For what it is used for ?