Partnership

Admission

Easy

common

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

Goodwill is never recorded

Self-generated Goodwill

Purchased Goodwill and Self- generated Goodwill, both.

Purchased Goodwill

✅ Correct Option: 4

AS-26 on Intangible Assets permits recognition only where the asset has been acquired for consideration, in money or money's worth. Purchased goodwill satisfies this test and is recorded.

Self-generated goodwill is internally built up, has no identifiable cost and is therefore not recorded in the books.

2025: 30 May Shift 1

Rohit and Mohit are partners in a firm sharing profits in the ratio 5:3. They admitted Bijoy as a new partner for 1/7 share in the profit. The new profit sharing ratio will be 4:2:1. Calculate the sacrificing ratio of Rohit and Mohit

2026: 11 May Shift 2

Sacrifice by partners means ________

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: 23 May Shift 2

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	Sacrificing ratio	I. New ratio - Old ratio
B.	Gaining ratio	II. Credit Side of Revaluation A/c
C.	Undervaluation of Stock	III. Old ratio - New ratio
D.	Overvaluation of Stock	IV. Debit Side of Revaluation A/c

Choose the correct answer from the options given below:

2025: 22 May Shift 2

Goodwill can also be ascertained by capitalising the super profit directly under which method?

2025: 30 May Shift 1

The profits for the five years of a firm are as follows – year 2013 Rs. 4,00,000;year 2014 Rs. 3,98,000; year 2015 Rs. 4,50,000; year 2016 Rs. 4,45,000 and year 2017 Rs. 5,00,000. Calculate the goodwill of the firm on the basis of a 4-year purchase of 5 years average profits:

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

Solution

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