Partnership

Accounting

Easy

common

Choose the correct order in calculation of the goodwill of the firm by Super Profit Method.

A. Calculation of Super Profit

B. Calculation of Normal Profit

C. Calculation of Capital Employed by the firm

D. Calculation of goodwill of the firm

Choose the correct answer from the options given below:

A, B, C, D

C, B, A, D

B, A, D, C

C, B, D, A

✅ Correct Option: 2

Capital employed must be found first, since normal profit $=$ capital employed $\times$ normal rate of return. Super profit $=$ actual average profit $-$ normal profit. Goodwill is then super profit multiplied by the agreed number of years of purchase.

Order: C, B, A, D.

2024

Match List-I with List-II

2025: 27 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Bank (fresh capital introduced)	(I) Debit side of Partner's Current Account
(B) Interest on drawings	(II) Debit side of Partner's Capital Account
(C) Bank (permanent withdrawal of capital)	(III) Credit side of Partner's Current Account
(D) Commission	(IV) Credit side of Partner's Capital Account

Choose the correct answer from the options given below:

2026: 11 May Shift 1

X and Y are partners in the firm. State which of the following claim is valid if the partnership agreement is silent in the following matters:

2025: 27 May Shift 1

If the partnership deed is silent on interest on capital, then:

2023: 20 June Shift 2

Salary of a partner is shown in

2026: 29 May Shift 1

Calculate the value of the goodwill of a firm based on 3 years' purchase of super profits, if the normal rate of return is 10%, average profits for the last five years were Rs. 60,000 and the capital of the firm is Rs. 5,00,000.

Choose the correct order in calculation of the goodwill of the firm by Super Profit Method. A. Calculation of Super Profit B. Calculation of Normal Profit C. Calculation of Capital Employed by the firm D. Calculation of goodwill of the firm Choose the correct answer from the options given below:

Solution

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