Partnership

Admission

Medium

common

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. Sam share of goodwill will be:

Rs. 1,10,000

Rs. 3,00,000

Rs. 38,000

Rs. 22,000

✅ Correct Option: 4

Sam is admitted for 1/5 share and brings Rs. 60,000 as capital.

Using Sam's capital contribution to find the total capitalized value of the firm:

If Sam's 1/5 share = Rs. 60,000

Then Total Capital of the firm = Rs. 60,000 × 5 = Rs. 3,00,000

Actual capital in the firm after Sam's admission:

Old partners' capital (Hem + Nem) = Rs. 80,000 + Rs. 50,000 = Rs. 1,30,000

Sam's capital brought in = Rs. 60,000

Total actual capital = Rs. 1,30,000 + Rs. 60,000 = Rs. 1,90,000

Hidden Goodwill of the firm:

Goodwill = Capitalized value - Actual capital

Goodwill = Rs. 3,00,000 - Rs. 1,90,000 = Rs. 1,10,000

Sam's share of goodwill:

Sam's share = $\frac{1}{5}$ × Rs. 1,10,000 = Rs. 22,000

This represents the amount Sam should contribute towards goodwill for acquiring 1/5 share in the accumulated goodwill of the firm, which will be credited to the old partners in their profit-sharing ratio.

2026: 11 May Shift 1

Usha and Disha are partners sharing profits in the ratio of 2:1. Usha's son Ashish was admitted for 1/4th share of which 1/8th was gifted by Usha to her son and the remaining was contributed by Disha. The goodwill of the firm is valued at Rs. 40,000. How much of the premium for goodwill will be credited to the old partners' capital account in case of admission of Ashish.

2026: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Sum of the product/ Total weights	(I) Normal Profit
(B) Firm Capital X Rate of return/100	(II) Weighted Average Profit
(C) Bank A/c Dr. To Premium for Goodwill A/c	(III) Amount of goodwill withdrawn by sacrificing partners
(D) Sacrificing Partners' Capital A/c Dr. To Bank A/c	(IV) Amount brought by new partner as his share of goodwill

Choose the correct answer from the options given below:

2022: 20 Aug Shift 2

Interest on capital will be shown on the Dr. side of Profit and Loss Appropriation A/c and ________ side of Partner's ________ A/c.

2025: 26 May Shift 2

Arrange the Following Steps to Calculate Goodwill under the Super Profits Method-

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

(B) Calculate the average profit

(D) Calculate goodwill by multiplying the super profits by the given number of years' purchase

Choose the correct answer from the options given below:

2025: 14 May Shift 2

The books of a business showed that the firm's capital employed on December 31, 2015, is Rs. 5,00,000 and the profits for the last five years were: 2011-Rs. 40,000; 2012-Rs. 50,000; 2013-Rs. 55,000; 2014- Rs.70,000 and 2015-Rs. 85,000. You are required to find out the normal profits of the business, given that the normal rate of return is 10%.

2026: 31 May Shift 1

Ajay, Bijoy and Payal are partners in a firm sharing profits in the ratio of 3:2:1. Sunil is admitted into the firm for 1/4 share in profits, which he gets as 1/8 from Ajay and 1/8 from Bijoy. The total capital of the firm is agreed upon as Rs. 1,20,000 and Sunil is to bring in cash equivalent to 1/4 of this amount as his capital. The new profit sharing ratio of Ajay, Bijoy, Payal and Sunil will be:

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. Sam share of goodwill will be:

Solution

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