The goodwill based on capitalization of average profit method is valued at Rs 1,80,000. If Net Assets are Rs 8,20,000 then find the capitalized value of average profits.

The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner is called sacrificing ratio. Identify the correct statements regarding sacrificing ratio.

(A) Sacrifice by a Partner = New Share of Profit – Old Share of Profit

(B) This ratio is calculated for all the partners i.e. old and incoming

(C) The ratio is normally clearly given as agreed among the partners, which could be the old ratio, equal sacrifice, or a specified ratio

(D) Sacrifice by a Partner = Old Share of Profit – New Share of Profit

Choose the correct answer from the options given below:

Various methods are used for the valuation of goodwill of a partnership firm. Which of the following is not the method of valuation of goodwill?

Arrange the following steps in the correct sequence when hidden goodwill is adjusted through capital accounts in case of admission of a partner:

(A) Compare capital required with actual capital.

(B) Calculate firm's total capital on the basis of new partner's share.

(C) Compute actual capital of the firm including new partner's capital.

(D) Determine new profit sharing ratio.

Choose the correct answer from the options given below.

Navya and Nitya are partners sharing profits in the ratio of 3:2 with capitals of Rs. 1,00,000 and Rs. 50,000 respectively. Hardik is admitted for 1/5 share in profits. The amount that Hardik will contribute as capital is ________

The accumulated profits and reserves are transferred to:

If, at the time of admission of a new partner, profit and loss account appears in the books, it will be transferred to: