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CUET Accountancy 2025 PYQs31 May Shift 1. Free, no login required.

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past year questions, CUET Accountancy 2025 31 May Shift 1

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past year questions, Partnership, CUET Accountancy 2025 31 May Shift 1

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Match List-I with List-II

List-IList-II
Method of Valuation of GoodwillFormula
(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:

Solution

✅ Correct Option: 2

Looking at each method and matching it with its corresponding formula:

(A) Average Profit Method calculates goodwill by multiplying the average profit by the number of years of purchase.

  • Formula: Goodwill = Average Profits × No. of years purchased
  • Matches with (III)

(B) Super Profit Method uses super profit (excess profit over normal profit) multiplied by the number of years of purchase.

  • Formula: Goodwill = Super profit × No. of years purchased
  • Matches with (I)

(C) Capitalization of Super Profit Method capitalizes the super profit at the normal rate of return to find goodwill.

  • Formula: Goodwill = (Super profit / Normal Rate of Return) × 100
  • Matches with (IV)

(D) Capitalization of Average Profit Method finds the total capitalized value of the business using average profits, then subtracts actual capital employed.

  • Formula: Goodwill = Capitalized value of average profit - Actual firm's capital
  • Matches with (II)

The correct matching is:

(A) - (III), (B) - (I), (C) - (IV), (D) - (II)

Correct answer: Option 2

Related questions:

2025: 4 June Shift 2

In case of admission of a partner, the new partner brings Rs. 20,000 only as his share of premium for goodwill out of Rs. 50,000. Journal entry for the adjustment of goodwill will be:

2025: 14 May Shift 2

Identify the incorrect journal entry related to Revaluation of Assets and Liabilities of a firm.

2025: 27 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:

2026: 21 May Shift 2

Any gain or loss arising from Adjustments for Revaluation of Assets and Reassessment of Liabilities shall be distributed among:

2026: 12 May Shift 1

Hem and Nem are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 80,000 and Rs. 50,000 respectively. They admitted Sam on Jan. 1, 2025 as a new partner for 1/5 share in the future profits. Sam brought Rs. 60,000 as his capital and does not bring his share of goodwill in cash. Choose the correct journal entry from the following:

DateParticularsL.F.Dr. AmountCr. Amount
Sam's Current A/c Dr.34,000
To Hem's Capital A/c20,400
To Nem's Capital A/c13,600
DateParticularsL.F.Dr. AmountCr. Amount
Sam's Current A/c Dr.22,000
To Hem's Capital A/c13,200
To Nem's Capital A/c8,800
DateParticularsL.F.Dr. AmountCr. Amount
Sam's Capital A/c Dr.22,000
To Hem's Capital A/c13,200
To Nem's Capital A/c8,800
DateParticularsL.F.Dr. AmountCr. Amount
Sam's Current A/c Dr.22,000
To Hem's Current A/c13,200
To Nem's Current A/c8,800

2025: 3 June Shift 1

The capital of the firm is Rs. 1,00,000 and normal rate of return is 8%. If the average profits for last 5 years are Rs. 12,000 then find goodwill of the firm based on 3 years' purchase of super profits.

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