Partnership

Admission

Easy

common

The term Number of Years' Purchase means:

Number of years for which goodwill is purchased.

Number of years during which the purchaser of goodwill expects that the profit due to goodwill are likely to arise in future.

Number of years for which goodwill purchased will not help the firm in earning similar profits.

Number of years for which the company is running business.

✅ Correct Option: 2

Number of years' purchase is the multiplier applied to average or super profit. It represents the period for which the buyer expects the benefit of the acquired reputation, that is, the number of years for which profits attributable to goodwill are expected to continue in future.

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.

2025: 26 May Shift 2

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

2026: 11 May Shift 2

Self - generated goodwill

2026: 31 May Shift 1

Ambar, Bimla and Tara are partners in a firm sharing profits in the ratio of 3:2:1. Adnan is admitted into the firm for 1/4 share in profits, which he gets as 1/8 from Ambar and 1/8 from Bimla. The total capital of the firm is agreed upon as Rs. 1,20,000 and Adnan is to bring in cash equivalent to 1/4 of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of Ambar, Bimla and Tara after all adjustments are Rs. 40,000, Rs. 35,000 and Rs. 30,000 respectively. Calculate the cash brought in or paid to each partner.

Choose the correct answer from the options given below:

2026: 23 May Shift 2

Gaurav and Rana are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 90,000 and Rs. 60,000 respectively. They admitted Rajiv on April 1, 2025 as a new partner for 1/4 share in the future profits. Rajiv brought Rs. 80,000 as his capital. Calculate the value of goodwill of the firm.

2022: 20 July Shift 1

Value of stock to be shown in Balance sheet after admission will be :

The term Number of Years' Purchase means:

Solution

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CUET Accountancy Past Year Questions (Topic-Wise)