Admission Questions

Based on Case Study 2, what is the value of the Average Profit?

A and B are partners sharing profits equally with capitals of $\text{Rs. }45,000$ each. They admit C as a new partner for a $\frac{1}{3}\text{rd}$ share in profits. C brings in $\text{Rs. }60,000$ as his capital. Find the value of the firm's total Goodwill based on this transaction.

Based on Case Study 2, what is the specific value of the Super Profit?

Based on Case Study 2, calculate the final value of Goodwill.

Based on Case Study 2 data, if the normal profit were instead given as $\text{Rs. }60,000$, what would be the revised calculated Normal Rate of Return?

Which of the following factors leads to a higher goodwill for firms?(A) Firms having long term contracts for supply of materials(B) Firms with efficient management(C) Firms which are highly profitable(D) Firms which do not have competitive advantagesChoose the correct answer from the options given below:

Which account is credited if the net assets taken over exceed the agreed purchase consideration at the time of purchasing a business?

Arrange the following accounting procedures in the correct chronological sequence followed at the time of admission of a new partner:(A) Adjustments of capital accounts.(B) Valuation of goodwill.(C) Calculation of new profit sharing ratio and sacrificing ratio.Choose the correct answer from the options given below:

Based on Case Study 2, find the value of Normal Profit.

The value of goodwill calculated based on the capitalization of average profit method is $\text{Rs. }1,80,000$. If the Net Assets of the firm are valued at $\text{Rs. }8,20,000$, find the capitalized value of average profits.

A and B are partners sharing profits in the ratio of $3:2$. They admit C for a $\frac{1}{5}\text{th}$ share in future profits, which he acquires equally from both A and B. What will be the new profit-sharing ratio?