Partnership

Admission

Medium

common

A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return in a similar business is 10%. Given that the value of net assets of the business is Rs. 8,20,000, the value of goodwill by capitalisation of super profits method will be:

Rs. 72,000

Rs. 82,000

Rs. 1,50,000

Rs. 1,80,000

✅ Correct Option: 4

Normal profit $= 8,20,000$ at $10$ per cent $= 82,000$ . Super profit $= 1,00,000 - 82,000 = 18,000$ . Capitalisation of super profit $= 18,000$ multiplied by $100/10 = 1,80,000$ .

2025: 22 May Shift 2

When a new partner brings his share of goodwill in cash, the amount is credited to:

2025: 22 May Shift 2

Abhiram and Ragini are partners sharing profits in the ratio of 3:2. They admit Arun a new partner for 1/5th share in the future profits of the firm which he gets equally from Abhiram and Ragini. Calculate the new profit sharing ratio of Abhiram, Ragini and Arun.

2026: 6 June Shift 1

Match List-I with List-II

List-I	List-II
(A) Incoming partner brings goodwill in cash	(I) No entry to be passed
(B) Goodwill already exist in the books	(II) Sacrificing partners are credited with their share and new partner is debited
(C) Incoming partner does not bring goodwill in cash	(III) Amount of Premium is shared by the existing partners in the sacrificing ratio
(D) Goodwill paid privately to sacrificing partners	(IV) Write-off the goodwill in old ratio

Choose the correct answer from the options given below:

2022: 20 July Shift 1

At the time of admission of a partner, if nothing is specified then new partner acquires his share from old partners.

2026: 29 May Shift 1

A and B are partners sharing profits in the ratio of 2:3. They admitted C as a new partner for 1/5 share in the future profits of the firm. Calculate the new profit share of A.

2026: 29 May Shift 1

At the time of admission, new partner brings his share of goodwill which is distributed among old partners. This treatment is conceptually used to:

A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return in a similar business is 10%. Given that the value of net assets of the business is Rs. 8,20,000, the value of goodwill by capitalisation of super profits method will be:

Solution

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