Partnership

Admission

Easy

common

What is the correct sequence for calculating goodwill by Capitalisation of Average Profit Method?

A. Compute the value of goodwill

B. Find Capitalized value of the average profits

C. Ascertain the average profits

D. Ascertain the actual firm's capital

Choose the correct answer from the options given below:

A, D, C, B

C, B, D, A

D, A, B, C

A, B, D, C

✅ Correct Option: 2

First find the average profit, then capitalise it at the normal rate of return, then compute the firm's actual capital employed (net assets), and finally take goodwill as the difference. Order: C, B, D, A.

2026: 19 May Shift 1

In case of admission of a partner, if a new partner is unable to bring the goodwill amount, then his/her goodwill premium will be taken from _________.

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%.

2025: 13 May Shift 1

On the admission of a new partner, an increase in the value of assets is debited to:

2025: 14 May Shift 2

Determine the value of firm's goodwill by capitalization of the super profit method if the average profits are Rs 1,00,000, super profits are Rs 18,000 and the normal rate of return is 10%.

2025: 16 May Shift 1

Under which method No. of Year's Purchase are not considered

2023: 29 May Shift 2

Match List I with List II

LIST I	LIST II
A. Loss on Revaluation	I. Credited to old partners in old ratio
B. Profit on Revaluation	II. Debited to profit and loss suspense A/C
C. Premium brought by new partner	III. Credited to old partners in sacrificing ratio
D. On the death of a partner, profit till the date of death is Rs. 2,000	IV. Debited to old partners in the old ratio

Choose the correct answer from the options given below:

Solution

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CUET Accountancy Past Year Questions (Topic-Wise)