Admission Questions

Sometimes the value of Goodwill is not given directly at the time of admission/retirement of a partner. In such a situation, it has to be inferred from the total capital structure and profit-sharing ratio. Such Goodwill is called:

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

If at the time of a partner's admission, a positive (credit) balance in the Profit and Loss Account appears in the books, it will be transferred directly to the:

A, B and C were partner's in a firm sharing profit and losses in the Ratio of $5:3:2$. They admitted D into partnership for $1/5$ share of profit which he takes equally from A and B. D brought sufficient amount of goodwill in cash. Capital brought in by is Rs. $50,000$. On the date of admission the Balance Sheet of A, B and C was as follows :Balance Sheet as on 31st March, 2021

Goodwill is to be valued at $3$ years purchase of average profit of last $4$ years which were Rs. $60,000$ (2017-18), Rs. $60,000$ (18-19), Rs. $30,000$ (19-20). On revaluation it was found that all debtors are good.What would be the effect of the line "All Debtors are good".

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

Which of the following factors affects the value of goodwill?(A) Location of Business
(B) Partners Performance
(C) Nature of Business
(D) Market SituationChoose the correct answer from the options given below:

Calculate the Normal Rate of Return if the firm's normal profit is $\text{Rs. }30,000$, total assets are $\text{Rs. }5,30,000$, and external liabilities are $\text{Rs. }30,000$, for the purpose of valuing goodwill at the time of a partner's admission.

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

$A$ and $B$ are partners sharing profits in the ratio of $2:1$. $C$ is admitted for a $\frac{1}{4}\text{th}$ share of profits, bringing $\text{Rs. }20,000$ as capital. After all adjustments related to goodwill, revaluation of assets, and reassessment of liabilities, the adjusted capitals of $A$ and $B$ are $\text{Rs. }45,000$ and $\text{Rs. }15,000$ respectively. It is agreed that the partners' capitals should be arranged in proportion to the new profit-sharing ratio. Determine the required new capital of partner $B$.

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

Abhiram and Ragini are partners sharing profits in the ratio of $3:2$. They admit Arun as a new partner for $\frac{1}{5}\text{th}$ 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.

When a new partner brings his share of goodwill in cash, the amount brought in is credited to:

When a new partner brings his share of goodwill in cash, the amount is credited to:

At the time a new partner is admitted, revaluation of assets and liabilities is made for the:

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

$X$, $Y$ and $Z$ are partners in a firm. If $M$ is admitted as a new partner, what would be its primary legal implication?

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

X and Y are partners sharing profits in the ratio $3:2$. Z is entered into the business for $\frac{1}{4}\text{th}$ 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. The amount of deficiency, if any, will be borne by:

$A$ and $N$ are partners sharing profits in the ratio $2:1$. $A$ 's son $Ashu$ was admitted as a partner for $\frac{1}{4}\text{th}$ share, half of which was gifted by $A$ to her son. The remaining portion was contributed by $N$. The goodwill of the firm is valued at Rs. $40,000$. How much amount will be credited to the old partners' capital accounts respectively for goodwill?

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

Upon the admission of a new partner, any upward revaluation adjustment (increase in the value of assets) is directly debited to:

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

Arrange the following steps in the correct logical sequence to calculate Goodwill using the Super Profits Method:(A) Calculate the normal profit on the firm's capital based on the normal rate of return.(B) Calculate the average historical maintainable profit.(C) Calculate the super profits by deducting normal profit from the average profit.(D) Calculate goodwill by multiplying the super profit by the specified number of years' purchase.Choose the correct answer from the options given below:

Arrange the steps in proper sequence to calculate Goodwill through the 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:

On the admission of a new partner, an increase in the value of assets is debited to:

The accumulated profits and reserves existing at the time of admission of a new partner are transferred to:

A and B are partners in a firm sharing profits in the ratio of $3:2$. They admit M as a new partner for a $\frac{1}{4}$ share. The new profit-sharing ratio between A and B is set to be $2:1$. Calculate their sacrificing ratio.

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

Match List - I with List - II.

Choose the correct answer from the options given below:

Arrange the steps involved under the super profit method of calculating goodwill in the correct sequence:(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 goodwill by multiplying the super profits by the given number of years' purchase(D) Calculate the super profits by deducting normal profit from the average profitsChoose the correct answer from the options given below:

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?

Sameer and Yasmin are partners with capitals of $\text{Rs. }15,00,000$ and $\text{Rs. }10,00,000$ respectively, sharing profits in the ratio of $3:2$. They admit Ravi on October 1, 2019. Ravi brings $\text{Rs. }12,00,000$ as capital, and Sameer introduces an additional capital of $\text{Rs. }3,00,000$ on that same date. Interest on partner's capital is provided @ $5\%$ p.a. The amount of interest on the capital of Sameer for the financial year 2019-20 is:

At the time of admission of a partner, undistributed profits appearing in the balance sheet of the old firm are transferred to the capital account of:

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

For computing Goodwill by capitalisation of Average Profit method, the following sequence would be followed:A. Capitalise the average profit on the basis of Normal Rate of ReturnB. Ascertain the firm's Capital - Total Assets - Outside LiabilitiesC. Ascertain the average profits based on past years' performanceD. Compute the volume of GoodwillChoose the correct answer from the options given below:

Match List-I with List-IIList-I (Revaluation Event)List-II (Journal Entry)(A) For increase in the value of an asset(I) Revaluation A/c Dr. To Asset A/c(B) For reduction in the amount of a liability(II) Revaluation A/c Dr. To Liability A/c(C) For reduction in the value of an asset(III) Asset A/c Dr. To Revaluation A/c(D) For appreciation in the amount of a liability(IV) Liability A/c Dr. To Revaluation A/cChoose the correct answer from the options given below:

Under which method is the goodwill valued at an agreed number of years' purchase of the average profits of the past few years?

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

Which of the following is NOT a method of valuation of goodwill?

$R$ and $S$ are partners in a firm sharing profits in the ratio of $5:3$. They admitted $B$ as a new partner for $\frac{1}{7}\text{th}$ share in the profit. The new profit sharing ratio among $R$, $S$, and $B$ becomes $4:2:1$. The sacrificing ratio of $R$ and $S$ is:

Arjun and Vaibhav are partners sharing profits in the ratio of $3:2$. They admitted Rahul as a new partner for $\frac{1}{5}$ share in the future profits of the firm. The new partner acquired his share from the old partners in the old ratio. Calculate the new profit sharing ratio of Arjun, Vaibhav and Rahul.

When a new partner is admitted, the undistributed profits that appear in the balance sheet of the old firm are transferred to the capital account of:

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?

At the time of admission of a partner, if nothing is specified then new partner acquires his share from old partners.

Vijay and Manohar share profits and losses in the ratio of $2:1$. They admit Prakash as a partner with $\frac{1}{4}$ share in profits with a guarantee that his share of profit will be at least Rs. $50,000$. The net profit of the firm for the year ending March 31, 2015, was Rs. $1,60,000$. Calculate the amount of profit Vijay will get.

A, B and C are partners in a firm sharing profits in the ratio of $3:2:1$. D is admitted into the firm for $1/4$ th share in profits, which he gets as $1/8$ th from A and $1/8$ th from B. The total capital of the firm is agreed upon as $\text{Rs. }1,20,000$ and D is to bring in cash equivalent to $1/4$ th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are $\text{Rs. }40,000$, $\text{Rs. }35,000$ and $\text{Rs. } 30,000 respectively.Required capitals of all partners is:

The steps involved in the calculation of goodwill under the super profit method are:(A) Calculate goodwill by multiplying the super profit by number of years purchase.(B) Calculate normal profit.(C) Calculate Average Profit(D) Calculate super profit.Choose the correct answer from the options given below:

According to Section 31 of the Indian Partnership Act, 1932, a new partner can be admitted into an existing partnership firm:

Match List-I with List-IIList-I (Items to be adjusted on admission)List-II (side of account)(A) Existing goodwill(i) Debit of capital account(B) Increase in value of assets(iii) Credit of revaluation account(C) Decrease in value of assets(ii) Debit of revaluation account(D) New partner capital(iv) Credit of capital accountChoose the correct answer from the options given below:

A, B and C are partners in a firm sharing profits in the ratio of $3:2:1$. D is admitted into the firm for $1/4$ th share in profits, which he gets as $1/8$ th from A and $1/8$ th from B. The total capital of the firm is agreed upon as $\text{Rs. }1,20,000$ and D is to bring in cash equivalent to $1/4$ th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are $\text{Rs. }40,000$, $\text{Rs. }35,000$ and $\text{Rs. }30,000$ respectively.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:

Kim and Sim are partners in a firm sharing profits in $4:3$ ratio. They admitted Pim as a new partner for $\frac{1}{4}$ share in the profits, which he acquired in the ratio of $3:2$ from Kim and Sim. Determine the new profit sharing ratio of the partners.

A, B and C were partner's in a firm sharing profit and losses in the Ratio of $5:3:2$. They admitted D into partnership for $1/5$ share of profit which he takes equally from A and B. D brought sufficient amount of goodwill in cash. Capital brought in by is Rs. $50,000$. On the date of admission the Balance Sheet of A, B and C was as follows :Balance Sheet as on 31st March, 2021

Goodwill is to be valued at $3$ years purchase of average profit of last $4$ years which were Rs. $60,000$ (2017-18), Rs. $60,000$ (18-19), Rs. $30,000$ (19-20). On revaluation it was found that all debtors are good.Calculate the total amount brought in by new partner D including Goodwill share :

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

A, B and C are partners in a firm sharing profits in the ratio of $3:2:1$. D is admitted into the firm for $1/4$ th share in profits, which he gets as $1/8$ th from A and $1/8$ th from B. The total capital of the firm is agreed upon as $\text{Rs. }1,20,000$ and D is to bring in cash equivalent to $1/4$ th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are $\text{Rs. }40,000$, $\text{Rs. }35,000$ and $\text{Rs. }30,000$ respectively.C will withdraw the capital amount after capital are adjusted in the ratio of their respective shares in profits. The amount is:

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

Amrita and Kalyani are partners sharing profits in the ratio of $3:2$. They decide to expand the business by admitting Suraj as a new partner for a $\frac{1}{4}\text{th}$ share. Suraj's share of premium for goodwill is valued at $\text{Rs. }90,000$, which he pays to compensate Amrita and Kalyani in an agreed ratio of $1:4$.The firm's books provide the following information on that date:
$$\begin{array}{lrr}\text{Particulars}& \text{Book Value (Rs.)}& \text{Revalued Figure (Rs.)}\\ \text{Machinery}& 25,00,000& 27,00,000\\ \text{Land}& 10,00,000& 50,00,000\\ \text{Computers}& 2,50,000& 50,000\\ \text{Workmen Compensation Fund}& 5,00,000& -\end{array}$$
The claim against the Workmen Compensation Fund is determined to be $\text{Rs. }2,00,000$, and an existing goodwill balance appears in the books at $\text{Rs. }60,000$.What is Amrita's share in the unallocated balance of the Workmen Compensation Fund?

Arrange the steps of the method "Capitalization of Average Profits" for the calculation of goodwill in the correct sequence:(A) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalized value of average profits as follows: $\text{Average Profits}\times \frac{100}{\text{Normal Rate of Return}}$ (B) Ascertain the average profits based on the past few years' performance.(C) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets).(D) Compute the value of goodwill by deducting net assets from the capitalized value of average profits.Choose the correct answer from the options given below:

A, B and C are partners in a firm sharing profits in the ratio of $3:2:1$. D is admitted into the firm for $1/4$ th share in profits, which he gets as $1/8$ th from A and $1/8$ th from B. The total capital of the firm is agreed upon as $\text{Rs. }1,20,000$ and D is to bring in cash equivalent to $1/4$ th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are $\text{Rs. }40,000$, $\text{Rs. }35,000$ and $\text{Rs. }30,000$ respectively.The New Profit Sharing Ratio in this case is:

The minimum guaranteed amount shall be paid to the new partner when his share of profit as per the profit sharing ratio:

A provision for doubtful debts is to be created at 5% of debtors. Debtors in the balance sheet are Rs. 60,000. Provision for Doubtful debts to be shown in Revaluation Account:

Rohit and Mohit are partners in a firm sharing profits in the ratio of $5:3$. They admitted Bijoy as a new partner for $\frac{1}{7}\text{th}$ share in the profit. The new profit sharing ratio will be $4:2:1$. What will be the sacrificing ratio of Rohit and Mohit?

Arrange the steps for valuing goodwill via the Capitalisation of Super Profits Method in the correct logical sequence:(A) Calculate the average profit for the past years, as specified.(B) Calculate the capital employed of the firm.(C) Calculate normal profits on the capital employed.(D) Multiply the super profits with the required rate of return multiplier $(\text{i.e., }\frac{100}{\text{Normal Rate of Return}})$.(E) Calculate super profits by deducting normal profits from average profits.Choose the correct answer from the options given below:

Which factor does not affect the value of goodwill?

Amrita and Kalyani are partners sharing profits in the ratio of $3:2$. They decide to expand the business by admitting Suraj as a new partner for a $\frac{1}{4}\text{th}$ share. Suraj's share of premium for goodwill is valued at $\text{Rs. }90,000$, which he pays to compensate Amrita and Kalyani in an agreed ratio of $1:4$.The firm's books provide the following information on that date:
$$\begin{array}{lrr}\text{Particulars}& \text{Book Value (Rs.)}& \text{Revalued Figure (Rs.)}\\ \text{Machinery}& 25,00,000& 27,00,000\\ \text{Land}& 10,00,000& 50,00,000\\ \text{Computers}& 2,50,000& 50,000\\ \text{Workmen Compensation Fund}& 5,00,000& -\end{array}$$
The claim against the Workmen Compensation Fund is determined to be $\text{Rs. }2,00,000$, and an existing goodwill balance appears in the books at $\text{Rs. }60,000$.Calculate the respective shares of Amrita and Kalyani in the revaluation profit.

The books of a business showed that the firm's capital employed on December 31, 2015, is Rs. 5,00,000 and the profits for the last five years were: 2011–Rs. 40,000; 2012–Rs. 50,000; 2013–Rs. 55,000; 2014–Rs. 70,000 and 2015–Rs. 85,000. Find out the normal profits of the business, given that the normal rate of return is 10%.

Determine the value of a firm's goodwill by the capitalization of super profit method if the average profits are $\text{Rs. }1,00,000$, super profits are $\text{Rs. }18,000$, and the normal rate of return is $10\%$.

A, B and C are partners in a firm sharing profits in the ratio of $3:2:1$. D is admitted into the firm for $\frac{1}{4}\text{th}$ share in profits, which he gets $\frac{1}{8}\text{th}$ from B. The total capital of the firm is agreed upon as $\text{Rs. }1,20,000$ and D is to bring in cash equivalent to $\frac{1}{4}\text{th}$ of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments, are $\text{Rs. }40,000$, $\text{Rs. }35,000$ and $\text{Rs. }30,000$ respectively. Calculate the new capital of A

Valuation of Goodwill takes place on which of the following occasions:A. Incorporation of a new businessB. Change in profit sharing ratioC. Amalgamation of partnership firmD. Admission of a partnerE. Dissolution of firm or closure of businessChoose the correct answer from the options given below:

A and B are partners in a firm sharing profits in the ratio $2:1$. C is admitted into the firm with $\frac{1}{4}\text{th}$ share in profits and he brings $\text{Rs. }30,000$ as his capital. If the capitals of A and B are to be adjusted in their profit sharing ratio then the capital of A will be-

Ramesh and Suresh are partners in a firm sharing profits in the ratio of $4:3$. They admitted Mohan as a new partner. The new profit sharing ratio of Ramesh, Suresh, and Mohan is determined to be $2:3:1$. Choose the correct option indicating the sacrifice or gain of the old partners:

Match List-I with List-II
$$\begin{array}{ll}\text{List-I (Method of Valuation)}& \text{List-II (Formula)}\\ \text{(A) Average profit method}& \text{(I) Goodwill = Super profit }\times \text{ No. of years purchased}\\ \text{(B) Super Profit Method}& \text{(II) Goodwill = Capitalized value of average profit - Actual firm’s capital.}\\ \text{(C) Capitalization of super profit method}& \text{(III) Goodwill = Average Profits }\times \text{ No. of years purchased}\\ \text{(D) Capitalization of average profit method}& \text{(IV) Goodwill = }\left(\frac{\text{Super profit}}{\text{Normal Rate of Return}}\right)\times 100\end{array}$$
Choose the correct answer from the options given below:

Match List I with List II regarding accounting adjustments during reconstitution/death:List IA. Loss on RevaluationB. Profit on RevaluationC. Premium brought by new partnerD. On the death of a partner, profit till the date of death is $\text{Rs. }2,000$ List III. Credited to old partners in old ratioII. Debited to profit and loss suspense A/CIII. Credited to old partners in sacrificing ratioIV. Debited to old partners in the old ratioChoose the correct answer from the options given below:

Anshu and Nitu are partners sharing profits in the ratio of $3:2$. They admitted Jyoti as a new partner for $\frac{3}{10}$ share which she acquired $\frac{2}{10}$ from Anshu and $\frac{1}{10}$ from Nitu. The new profit sharing ratio of Anshu, Nitu and Jyoti.

The books of a business showed that the firm's capital employed on December 31, 2015, is $\text{Rs. }5,00,000$. The profits for the last five years were:2011: $\text{Rs. }40,000$ 2012: $\text{Rs. }50,000$ 2013: $\text{Rs. }55,000$ 2014: $\text{Rs. }70,000$ 2015: $\text{Rs. }85,000$ Find out the normal profits of the business, given that the normal rate of return is $10\%$.

At the time of a partner's admission, if the actual Workmen Compensation Claim exceeds the existing Workmen Compensation Reserve, the excess amount is transferred to the:

Plant and Machinery in the balance sheet is Rs. 1,00,000. Plant is to be appreciated to Rs. 1,20,000. Amount to be shown in Revaluation Account:

Abhiram and Ragini are partners sharing profits in the ratio of $3:2$. They admit Arun as a new partner for a $\frac{1}{5}\text{th}$ share in the future profits of the firm. Arun acquires this share equally from Abhiram and Ragini. Calculate the new profit-sharing ratio of Abhiram, Ragini, and Arun.

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

Match List-I with List-II:List-I (Types of goodwill)List-II (Treatment to be done)(A) Existing Goodwill(I) No entry passed.(B) Goodwill premium(II) Inferred from the capital arrangement.(C) Goodwill paid privately(III) Written off.(D) Hidden goodwill(IV) Credited to sacrificing partner.Choose the correct answer from the options given below:

Hidden Goodwill is:

Match List-I with List-IIList–IList–II(A) Existing Goodwill(I) no entry passed.(B) Goodwill premium(II) Calculated on the basis of capital of partners.(C) Goodwill paid privately(III) Written off.(D) Hidden goodwill(IV) credited to sacrificing partner.Choose the correct answer from the options given below:

The steps involved in calculation of Goodwill under Super Profit method are:(A) Calculate the super profits by deducting normal profit from the average profits.(B) Calculate the normal profit on the firm's capital on the basis of the normal rate of return.(C) Calculate the average profit.(D) Calculate goodwill by multiplying the super profits by the given number of years' purchase.Choose the correct sequence of steps from the options given below:

The capital of the firm is $\text{Rs. }1,00,000$ and normal rate of return is $8\%$. If the average profits for last 5 years are $\text{Rs. }12,000$ then find goodwill of the firm based on 3 years' purchase of super profits.

At the time of admission of partner if goodwill exist in the books of account it will be written off among:

The journal entries recorded for revaluation of assets and reassessment of liabilities are given here, find the correct :(A) For increase in the value of an assetAsset A/c Dr.To Revaluation A/c(B) For reduction in the value of an assetRevaluation A/c Dr.Asset A/c(C) For increase in the amount of a liabilityLiability A/c Dr.To Revaluation A/c(D) For recording in the amount of a unrecorded liabilityRevaluation A/c Dr.To Liability A/cChoose the correct answer from the options given below:

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.

Rajinder and Surinder are partners in a firm sharing profits in the ratio of $4:1$. On April 15, 2017, they admitted Narender as a new partner. On that date, there was a balance of $\text{Rs. }20,000$ in general reserve and a debit balance of $\text{Rs. }10,000$ in the profit and loss account of the firm. Which among the following statements is correct for transferring profit and loss account?

At the time of admission, credit balance of Profit and Loss account appearing in books will be transferred to:

Ranjan and Anjan were partners in a firm sharing profits and losses in $3:2$. They admitted Sanjan for $\frac{1}{4}$ share of profit on 1 Jan 2024. Goodwill of the firm will be valued at 3 years' purchase of the average profit of the last 4 years, which were:2024: $\text{Rs. }80,000$ 2023: $\text{Rs. }1,40,000$ 2022: $\text{Rs. }2,00,000$ 2021: $\text{Rs. }1,60,000$ The goodwill of the reconstituted firm will be:

If a new partner does not bring his share of goodwill in cash, which of the following adjustment treatments must be carried out?

Vijay and Manohar share profits and losses in the ratio of $2:1$. They admit Prakash as a partner with $\frac{1}{4}$ share in profits with a guarantee that his share of profit will be at least $\text{Rs. }50,000$. The net profit of the firm for the year ending March 31, 2015, was $\text{Rs. }1,60,000$. Calculate the amount of profit Vijay will get.

Revaluation Account is a/an:

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 was the extra Rs 50,000 asked from C?

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

A, B and C were partner's in a firm sharing profit and losses in the Ratio of $5:3:2$. They admitted D into partnership for $1/5$ share of profit which he takes equally from A and B. D brought sufficient amount of goodwill in cash. Capital brought in by is Rs. $50,000$. On the date of admission the Balance Sheet of A, B and C was as follows :Balance Sheet as on 31st March, 2021

Goodwill is to be valued at $3$ years purchase of average profit of last $4$ years which were Rs. $60,000$ (2017-18), Rs. $60,000$ (18-19), Rs. $30,000$ (19-20). On revaluation it was found that all debtors are good.From the above calculate amount of Goodwill :

A, B and C were partner's in a firm sharing profit and losses in the Ratio of $5:3:2$. They admitted D into partnership for $1/5$ share of profit which he takes equally from A and B. D brought sufficient amount of goodwill in cash. Capital brought in by is Rs. $50,000$. On the date of admission the Balance Sheet of A, B and C was as follows :

Goodwill is to be valued at $3$ years purchase of average profit of last $4$ years which were Rs. $60,000$ (2017-18), Rs. $60,000$ (18-19), Rs. $30,000$ (19-20). On revaluation it was found that all debtors are good.Goodwill brought in by new partners would be _________.

The goodwill brought in by the new partner is distributed by old partner their:

$P$, $Q$ and $R$ are partners in a firm. If $S$ is admitted as a new partner then:

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

When a new partner is admitted, the increase in the value of the assets is debited to which account?