CUET Accountancy: PartnershipAdmission. Free, no login required.

In the case of guarantee of profit the Sequence of steps to be Followed are.

(A) divide the profit in the given ratio.

(B) prepare profit and loss appropriation account as usual.

(C) deduct the deficiency from the guaranteeing partner and add the same to guaranteed partner.

(D) find the deficiency.

Choose the correct answer from the options given below:

Abhiram and Ragini are partners sharing profits in the ratio of 3:2. They admit Arun a new partner for 1/5th share in the future profits of the firm which he gets equally from Abhiram and Ragini. Calculate the new profit sharing ratio of Abhiram, Ragini and Arun.

The past average profits of a business works out at Rs. 20,000 and it is expected that such profits are likely to continue for another three years, the value of goodwill based on average profit method will be……. .

While doing adjustment of partners capital, for the amount of capital to be brought in by the partner, the following entry will be passed:

As per AS-26 Intangible assets like goodwill should be written off.

L and M are partners sharing profits in the ratio 3:2. N is admitted as a partner for 1/5th of the share which is acquired from L. Goodwill of the firm is valued at Rs. 40,000 on N's admission. N will have to pay for Goodwill:

Arrange the steps in proper sequence to calculate Goodwill through Super profits Method.

(A) Calculate the normal profit on the firm's capital on the basis of the normal rate of return.

(B ) Calculate the average profit.

(C) Calculate the super profits by deducting normal profit from the average profits.

(D) Multiply super profits by the given number of years purchased.

Choose the correct answer from the options given below:

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

X and Y are partners sharing profits in the ratio 3:2. Z is entered into the business for 1/4th share of profits, with the guarantee of minimum profits of ₹ 30,000. Profit earned by the business for the year ended March 31st, 2024 is ₹ 1,00,000. Amount of deficiency, if any, will be borne by:

The ratio in which the old partners agree to give their share of profit in favor of the incoming partner is called:

If, at the time of admission of a new partner, profit and loss account appears in the books, it will be transferred to:

Which of the following factors affects the value of goodwill?

(A) Location of Business

(B) Partners Performance

(C) Nature of Business

(D) Market Situation

Choose the correct answer from the options given below:

The reserve fund at the time of admission of a new partner is transferred to -

A new partner can be admitted:

A and B are partners sharing profits equally with capitals of Rs 45,000 each. They admitted C as a new partner for 1/3rd share in the profit. C bring Rs 60,000 as his capital. Find the goodwill of the firm.

A and B share profits in the ratio of 3:2. C was admitted as a partner who gets 1/5 share. New profit sharing ratio, if C acquires 3/20 from A and 1/20 from B, would be:

Which of the below mentioned methods are considered while valuing goodwill

(A) Average Profits Method

(B) Super Profits Method

(C) Peacemeal distribution Method

(D) Capitalization Method

Choose the correct answer from the options given below:

Under which method No. of Year's Purchase are not considered

Match List-I with List-II

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At the time of Reconstitution, Goodwill already appearing in books of accounts is distributed among partners in_______.

Goodwill is considered as

A and B are partners, they admit C into partnership. C was asked to pay Rs 2,50,000 though his share of capital was estimated Rs 2,00,000 only. for what Rs 50,000 extra was asked from C?

Which of the following is not one of the method of valuation of goodwill?

In line with what is prescribed by the Accounting Standard, goodwill appearing in the balance sheet is written off at the time of

If a new partner does not bring his share of goodwill in cash, the following treatment shall be made

Arrange the following regarding admission procedure in the correct sequence.

(A) Giving share to the new partner.

(B) Treatment of Goodwill

(C) Calculating new profit sharing ratio & sacrificing ratio

(D) Preparation of Revaluation A/c

(E) Preparing Partner's Capital A/c and Balance Sheet

Choose the correct answer from the options given below:

A, B and C are partners in a firm. If D is admitted as a new partner, what will be its affect?

Which of the following is not the main factors affecting the value of Goodwill?

A and B are partners sharing profits in the ratio of 2:1. C is admitted into the firm for 1/4 share of profits. C brings in Rs. 20,000 in respect of his capital. The capitals of old partners A and B, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs. 45,000 and Rs. 15,000 respectively. It is agreed that partners' capitals should be according to the new profit sharing ratio. Determine the new profit sharing ratio

A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return in a similar business is 25%. Ascertain the value of goodwill by capitalisation of average profits method, given that the value of net assets of the business is Rs. 3,20,000.