Partnership

Admission

Easy

common

The profits for the past five years of a firm are as follows: 2021 - Rs. 4,50,000; 2022 - Rs. 3,20,000; 2023 - Rs. 3,50,000; 2024 - Rs. 4,30,000 and 2025 - Rs. 3,00,000. What will be the amount of goodwill of the firm on the basis of three years purchase of five years average profits?

Rs. 3,70,000

Rs. 11,00,000

Rs. 11,10,000

Rs. 18,50,000

✅ Correct Option: 3

Total profit $= 4{,}50{,}000 + 3{,}20{,}000 + 3{,}50{,}000 + 4{,}30{,}000 + 3{,}00{,}000 = 18{,}50{,}000$ .

Average profit $= 18{,}50{,}000 / 5 = 3{,}70{,}000$ .

Goodwill $= 3{,}70{,}000 \times 3 = 11{,}10{,}000$ .

2026: 31 May Shift 1

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

2023: 11 June Shift 3

Match List - I with List - II.

List - I	List - II
(A) Increase in Furniture Value	(I) Credit side of Partner's Capital A/c
(B) Depreciation on Machinery	(II) Debit side of Partner's Capital A/c
(C) General Reserve	(III) Credit side of Revaluation A/c
(D) Goodwill appearing in Books	(IV) Debit side of Revaluation A/c

Choose the correct answer from the options given below :

2023: 20 June Shift 2

Profits made on Revaluation of Assets and Reassessment of Liabilities is distributed among whom?

2025: 14 May Shift 2

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

2026: 13 May Shift 2

Akash and Nitesh are partner's sharing profits in the ratio of 2:1. Kamlesh was admitted for 1/4 share, of which 1/8 was gifted by Akash. The remaining was contributed by Nitesh. The goodwill of the firm is valued at Rs. 1,60,000. How much amount of premium for goodwill will be credited to Nitesh's Capital Account?

2022: 20 July Shift 1

A and B are partners sharing profits in the ratio of 5 : 4. C is admitted as a partner and he acquires 25% of his share from A. B surrenders $\frac{1}{4}$ th from his share in favour of C. Calculate C's share in profit.

The profits for the past five years of a firm are as follows: 2021 - Rs. 4,50,000; 2022 - Rs. 3,20,000; 2023 - Rs. 3,50,000; 2024 - Rs. 4,30,000 and 2025 - Rs. 3,00,000. What will be the amount of goodwill of the firm on the basis of three years purchase of five years average profits?

Solution

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CUET Accountancy Past Year Questions (Topic-Wise)