What will be the value of goodwill by Capitalisation of Average Profit Method?

Average profit: Rs. 2,00,000

Normal rate of return: 10%

Value of net assets of business: Rs.12,00,000

Identify the type of Goodwill that is to be recorded in accounts book according to Accounting Standard-26.

Arrange the following steps in the correct sequence after admission of a new partner:

(A) Revaluation of Assets and Liabilities

(B) Calculation of New Profit Sharing Ratio and Sacrificing Ratio

(C) Preparation of Balance Sheet

(D) Distribution of Accumulated Profits and Reserves in the capital accounts

Dinesh, Ramesh and Suresh are partners in a firm sharing profits and losses in the ratio of 3:3:2. They decided to share the profits equally w.e.f. April 1, 2025. On that date, sundry debtors of Rs. 60,000 and stock of Rs. 1,20,000 appeared in the balance sheet. A provision of 5% on sundry debtors be made for doubtful debts. The value of stock be reduced to Rs. 1,12,000. The gain or loss on revaluation would be:

P, Q and R are partners sharing profits in the ratio of 3:1:1 S admits in the firm for $\frac{2}{10}$ share in the future. The sacrificing ratio would be

What are the main factors affecting the value of goodwill?

(A) Nature of business

(B) Location

(C) Efficiency of management

(D) Market situation

Choose the correct answer from the options given below:

Arrange the following steps for calculation of goodwill using the Super Profit Method:

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

(B) Calculate the super profits by deducting normal profit from the average profits.

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

(D) Calculate the average profit.

Choose the correct answer from the options given below: