CUET Accountancy - 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 10%. Ascertain the value of goodwill by capitalisation of average profits method, given that the value of net assets of the business is Rs. 8,20,000. | PYQs + Solutions

CUET Accountancy 2025 31 May Shift 1

Partnership

Medium

common

Rs. 1,00,000

Rs. 2,20,000

Rs. 1,80,000

Rs. 1,50,000

✅ Correct Option: 3

Related questions:

3 June Shift 1

Arrange the following steps which involve the Super Profits Method of valuation of goodwill in the correct sequence:

(A) Calculate the average profit.

(B) Calculate the normal profit on the firm's capital on the basis of the normal rate of return.

(D) Calculate the super profits by deducting normal profit from the average profits.

Choose the correct answer from the options given below:

27 May Shift 2

________ is the value of the reputation of a firm in respect of the profits expected in future over and above the normal profits.

3 June Shift 1

Match List-I with List-II

List–I	List–II
(A) Existing Goodwill	(I) no entry passed.
(B) Goodwill premium	(II) Calculated on the basis of capital of partners.
(C) Goodwill paid privately	(III) Written off.
(D) Hidden goodwill	(IV) credited to sacrificing partner.

Choose the correct answer from the options given below:

CUET Accountancy 2025 31 May Shift 1 PYQs