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Kishor and Kunal were partners sharing profits and losses in the ratio of 5:3. On 1st April, 2026 they admitted Kushagra as a new partner and new ratio was decided as 3:2:1. Goodwill of the firm was valued as ₹ 18,00,000. Kushagra couldn't bring any amount for goodwill. The journal entry for the same would be:

Arrange the following steps in the correct sequence when hidden goodwill is adjusted through capital accounts in case of admission of a partner:

(A) Compare capital required with actual capital.

(B) Calculate firm's total capital on the basis of new partner's share.

(C) Compute actual capital of the firm including new partner's capital.

(D) Determine new profit sharing ratio.

Choose the correct answer from the options given below.

Choose the correct sequence of steps related to admission of a new partner.

(A) Prepare Revaluation Account.

(B) Prepare Balance Sheet.

(C) Calculation of sacrificing ratio.

(D) Prepare Partners' Capital Account.

Choose the correct answer from the options given below:

Anil and Bharat are partners in a firm with capitals of Rs. 18,00,000 and Rs. 12,00,000 respectively. Normal rate of return is 15% and goodwill calculated at 2 years' purchase of super profits is valued at Rs. 6,00,000. The average profits of the firm would be:

Anju and Bhawna are partners in a firm sharing profits in the ratio of 9/12 and 5/20. Chetna was admitted for 7/35 share and she could not bring her share of goodwill in cash. Goodwill of firm is valued at Rs. 50,000. Journalise :-

Extract of Balance Sheet of a Partnership firm is given below :-

Provision for bad debts is to be made equal to 5% of debtors, for this adjustment what journal entry will be recorded related to Revaluation A/c?

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

Ajay and Bharat are partners in a firm. Their profit sharing ratio is 3:2. They admitted Chetan for 25% share of profit. Building is to be depreciated by 20% (Book Value Rs. 50,000) and the machinery would be appreciated by 10% (Book Value Rs. 40,000), an unrecorded Debtor of Rs. 1000 would be brought into the firm's books. What was Bharat's share of revaluation profit/loss :-

Which of the following statements are correct?

(A) When a new partner is admitted into partnership firm, sacrificing ratio is used to distribute new partner's share of goodwill.

(B) Hidden goodwill is the excess of Total Capital of the new firm (based on new partner's capital) over the actual combined capital of all the partners.

(C) When a new partner is admitted into partnership firm, the new partner compensates the old partners for their loss of share in the divisible profits of the firm for which he brings in an additional amount that is called as Premium for Goodwill.

(D) Employees' Provident Fund should be distributed among the old partners at the time of admission of a new partner.

Choose the correct answer from the options given below:

Aryan and Bala are partners in a firm. The admitted Charu as a partner with 20% share in profits of the firm. Charu brings Rs. 2,00,000 as her share of capital. Calculate the value of Charu's share of goodwill on the basis of her capital, given that the combined capital of Aryan and Bala after all adjustments is Rs. 5,00,000.

When a new partner is entered into firm, goodwill already appeared in books of accounts of firm, should be written off in which of the following.

Consider the given steps of calculating the Value of Goodwill on the Basis of Capitalization of Super Profit and arrange them in correct sequence.

(A) Calculation of Super Profits

(B) Calculation of Capital Employed/Net Assets

(C) Calculation of Normal Profits and Average Profits

(D) Calculation of Capitalized value of Super Profit

Choose the correct sequence of the above steps from the options given below:

Amol and Bimal are partners in a firm. Their capitals are Rs. 1,08,000 and Rs. 72,000 respectively. They admitted Chaman for 1/3 share in profits. Chaman brought proportionate amount of capital. The Capital brought in by Chaman would be?

Capital employed by a partnership firm is Rs. 15,00,000. Its average profit is Rs. 1,80,000. The normal rate of return in similar type of business is 10%. What is the amount of super profits?

Match List-I with List-II

Choose the correct answer from the options given below:

In case of admission of a partner, Match List-I with List-II.

Choose the correct answer from the options given below:

Hem and Nem 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 Sam on Jan. 1, 2025 as a new partner for 1/5 share in the future profits. Sam brought Rs. 60,000 as his capital and does not bring his share of goodwill in cash. Choose the correct journal entry from the following:

Arrange the following steps for calculation of goodwill using the Super Profit Method:

(A) Calculate goodwill by multiplying the super profits by the given number of years' purchase.

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

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

(D) Calculate the average profit.

Choose the correct answer from the options given below:

Which of the following is not a purpose of a firm preparing a Revaluation Account?

The profits of firm for the five years are as follows:

Calculate the value of goodwill on the basis of four years' purchase of average profits.

Amar and Bahadur are partners in a firm sharing profits in the ratio of 3:2. They admitted Mary as a new partner for 1/4 share. The new profit sharing ratio between Amar and Bahadur will be 2:1. Calculate their sacrificing ratio.

Match List-I with List-II

Choose the correct answer from the options given below:

Sachin and Sohail, are partners, sharing profits in the ratio of 2:1. Sonam is admitted into the firm for 1/4 share of profits. Sonam brings in Rs. 20,000 in respect of his capital. The capitals of old partners, Sachin and Sohail, 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 capital should be according to the new profit-sharing ratio. What would be the new profit sharing ratio of Sachin, Sohail, and Sonam?

The new partner is required to compensate the old partners for their loss of share in the super profits of the firm for which he brings in an additional amount as premium for goodwill. This amount is shared by the existing partners in which ratio?

Rahul, Anuj and Sharjeel are partners in a firm sharing profits in the ratio of 8:5:3. It is felt that Rahul will no longer be able to actively participate in affairs of the firm. Hence, with effect from April 1, 2025, they decided that, in future they will share the profits in the ratio of 5 : 6 : 5. In this case, what will be the share of Rahul's loss in profits?

Which of the following is not a mode of reconstitution of a partnership firm?

In adjustment of capital during admission of a partner, certain steps are followed. Arrange them in a sequence:

(A) Calculation of new profit sharing ratio

(B) Calculate required capitals of old partners

(C) Calculate the cash to be brought in or withdrawn by old partners

(D) Calculate firm's capital

Choose the correct answer from the options given below:

A business has earned average profits of Rs. 5,30,000 during the last few years and the normal rate of return in a similar business is 10%. Ascertain the value of goodwill by capitalisation of average profits method, given that the value of net assets of the business is Rs. 30,00,000.

Self - generated goodwill

Amrita and Pritam are partners in a firm sharing profits in the ratio of 3:2. They admitted Manya as a new partner for 1/3rd share. The new profit sharing ratio between Amrita and Pritam will be 1:1. Calculate their sacrificing ratio.