The purpose of preparing the Revaluation Account is:

Arrange the following steps for calculating Goodwill under Capitalisation of Average Profits Method in correct sequence-

(A) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets.

(B) Compute the value of goodwill by deducting net assets from the capitalised value of average profits.

(C) Ascertain the average profits based on the past few years' performance.

(D) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalised value of average profits.

Choose the correct answer from the options given below:

The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. A will bring in cash as capital after adjustment amount:

"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:

In case of admission of a partner, the new partner brings Rs. 20,000 only as his share of premium for goodwill out of Rs. 50,000. Journal entry for the adjustment of goodwill will be:

A and B are partners sharing profits in the ratio of 3:2. They admit C for 1/5th share in the future profits which he gets equally from both A and B. The new profit sharing ratio will be:

At the time of admission of a new partner general reserve appearing in the old balance sheet is transferred to _______