The books of a business showed that the firm's capital employed on December 31, 2025 was Rs. 7,00,000 and the profits for the last five years were: 2021-Rs. 80,000; 2022-Rs. 85,000; 2023-Rs. 75,000; 2024- Rs. 80,000; 2025-Rs. 75,000. What will be the value of goodwill based on 3 years' purchase of the super profits of the business, given that the normal rate of return is 10%?

At the time of admission of a partner, undistributed profits appearing in the balance sheet of the old firm is transferred to the capital account of:

Arrange the following steps to calculate value of Goodwill by capitalization method of super profit in a proper sequence.

A. Calculate normal profit on capital employed

B. Actual Profits - Normal Profits = Super Profit

C. $\frac{super\ profit \times 100}{Normal\ rate\ of\ returns}$

D. Calculate actual profits on capital employed

Choose the correct answer from the given options

What journal entry will be passed for goodwill appearing in the books ?

A and B are partners in a firm sharing profits in the ratio 2:1. C is admitted into the firm with 1/4th share in profits and he brings Rs. 30,000 as his capital. If the capitals of A and B are to be adjusted in their profit sharing ratio then the capital of A will be-

Hema and Nema are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 80,000 and Rs. 50,000 respectively. They admitted Sama on Jan. 1, 2025 as a new partner for 1/4 share in the future profits. Sama brought Rs. 60,000 as his capital. Calculate the value of goodwill of the firm

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