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CUET Accountancy 2025 PYQs27 May Shift 2. Free, no login required.

Partnership

past year questions, CUET Accountancy 2025 27 May Shift 2

Admission

past year questions, Partnership, CUET Accountancy 2025 27 May Shift 2

Easy

common

What are the main factors affecting the value of goodwill?

(A) Nature of business

(B) Location

(C) Efficiency of management

(D) Market situation

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

Goodwill represents the value of a firm's reputation and its ability to earn profits above normal levels. Its value is influenced by multiple factors:

Nature of business - Certain types of businesses inherently generate more goodwill. For instance, professional services, established pharmaceutical companies, or branded consumer goods typically command higher goodwill compared to commodity trading businesses.

Location - A strategic location with high visibility, easy accessibility, and good customer footfall directly enhances goodwill. A shop in a prime market area will have higher goodwill than an identical business in a remote location.

Efficiency of management - Competent management leads to better profitability, customer relationships, and brand reputation. Superior management practices, innovation, and employee satisfaction all contribute to building goodwill value.

Market situation - External market conditions significantly impact goodwill. Factors like favorable demand trends, level of competition, economic conditions, and growth prospects in the industry affect how much a business's goodwill is worth.

All four factors directly influence the earning capacity and reputation of a business, which are the fundamental determinants of goodwill value.

Correct Answer: Option 3: (A), (B), (C) and (D)

Related questions:

2026: 21 May Shift 1

Anil and Uday are partners sharing profits equally. Arvind is admitted as a new partner. He brings Rs. 1,00,000 only out of his share of goodwill of Rs. 1,50,000. In this situation the journal entries will be:

2025: 31 May Shift 1

A, B and C are partners in a firm sharing profits in the ratio of 3:2:1. D is admitted into the firm for 1/4th share in profits, which he gets 1/8th from B. The total capital of the firm is agreed upon as Rs. 1,20,000 and D is to bring in cash equivalent to 1/4th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments, are Rs. 40,000, Rs. 35,000 and Rs. 30,000 respectively. Calculate the new capital of A

2023: 11 June Shift 3

Match List - I with List - II.

List - IList - II
(A) Profits of firm after admission of partner(I) Sacrificing Ratio
(B) Goodwill brought in by new partner(II) Old Ratio
(C) Profit on revaluation(III) Gaining Ratio
(D) Retiring Partner's Share of Goodwill(IV) New Ratio

Choose the correct answer from the options given below :

2026: 19 May Shift 1

P, Q and S are partners in a firm sharing profit and losses in the ratio of 3:2:1. They agreed to admit R as a partner with 1/6th share in profits of the firm. The following Journal entries were passed on his admission. Arrange them in sequence

(A)

DateParticularsL.F.Dr. AmountCr. Amount
P's Capital A/c Dr.5,400
Q's Capital A/c Dr.3,600
S's Capital A/c Dr.1,800
To Goodwill A/c10,800
(Being existing goodwill ₹ 10,800 written off in old profit sharing ratio)

(B)

DateParticularsL.F.Dr. AmountCr. Amount
Cash A/c Dr.64,800
To R's Capital A/c60,000
To Premium for Goodwill A/c4,800
(Being R brought capital ₹ 60000 and his share of goodwill Rs. 4800)

(C)

DateParticularsL.F.Dr. AmountCr. Amount
P's Capital A/c Dr.2,400
Q's Capital A/c Dr.1,600
S's Capital A/c Dr.800
To Cash A/c4,800
(Being share of goodwill withdrawn by old partners )

(D)

DateParticularsL.F.Dr. AmountCr. Amount
Premium for Goodwill A/c Dr.4,800
To P's Capital A/c2,400
To Q's Capital A/c1,600
To S's Capital A/c800
(Being goodwill brought by R distributed in sacrificing ratio)

Find the correct sequence :

2026: 11 May Shift 1

Amar and Barun are partners, sharing profits in the ratio of 3:1. Charu is admitted into the firm for 1/5 share of profits. Charu brought in Rs. 30,000 in respect of her capital. The capitals of old partners Amar and Barun, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs. 65,000 and Rs. 15,000 respectively. It is agreed that partners' capitals should be according to the new profit sharing ratio. Calculate the amount brought in/withdrawn by Amar to adjust his capital according to the new profit sharing ratio.

2025: 4 June Shift 2

Goodwill is a/an:

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