Partnership

Admission

Medium

common

Anurag and Manish are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 1,00,000 and Rs. 80,000 respectively. They admitted Priya on Jan. 1, 2025 as a new partner for 1/5 share in the future profits. Priya brought Rs. 80,000 as her capital. Calculate Priya's share of Goodwill.

Rs. 44,000

Rs. 80,000

Rs. 28,000

Rs. 36,000

✅ Correct Option: 3

This is a hidden goodwill case. Implied total capital based on Priya's contribution $= 80,000 \times 5 = Rs.\,4,00,000$ . Actual combined capital $= 1,00,000 + 80,000 + 80,000 = Rs.\,2,60,000$ . Hidden goodwill $= 4,00,000 - 2,60,000 = Rs.\,1,40,000$ . Priya's share $= 1,40,000 \times 1/5 = Rs.\,28,000$ .

2026: 21 May Shift 2

In case of admission of a new partner, Match the LIST-I with LIST-II.

LIST-I		LIST-II
A.	Increase in Assets	I. Debit side of Partners' Capital A/c
B.	Adjustment for Accumulated Profits and Losses A/c	II. Credit side of Revaluation A/c
C.	Increase in Liabilities	III. Credit side of Partners' Capital A/c
D.	Existing goodwill written off	IV. Debit side of Revaluation A/c

Choose the correct answer from the options given below.

2026: 11 May Shift 2

"Goodwill is the value of the reputation of a firm in respect of the profits expected in future over and above the normal profits." Which of the following statements are incorrect in the context of goodwill?

A. It is tangible asset.

B. Goodwill exists only when the firm earns super profits.

C. It is intangible asset.

D. Goodwill tends to be low if the business is centrally located or is at a place having heavy customer traffic,

Choose the correct answer from the options given below:

2026: 21 May Shift 2

If the partners decide to withdraw the amount of premium for goodwill credited to their capital account, the following entry will be passed:

2026: 21 May Shift 1

Identify the factor affecting value of goodwill highlighted in the following statement

"The monopoly condition or limited competition enables the concern to earn high profits which leads to higher value of goodwill."

2025: 14 May Shift 1

C will withdraw the capital amount after capital are adjusted in the ratio of their respective shares in profits. The amount is:

2025: 24 May Shift 1

Match List-I with List-II

List-I	List-II
Revaluation of assets and reassessment of liabilities at the time of admission of a new partner	Journal Entry
(A) For increase in the value of an asset	(I) Revaluation A/c Dr. To Asset A/c
(B) For reduction in the amount of a liability	(II) Revaluation A/c Dr. To Liability A/c
(C) For reduction in the value of an asset	(III) Asset A/c Dr. To Revaluation A/c
(D) For appreciation in the amount of a liability	(IV) Liability A/c Dr. To Revaluation A/c

Choose the correct answer from the options given below:

Solution

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