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Amol and Ameet are partners sharing profits and losses in the ratio of 2 : 1. They admit Atul for 1/4th share. For the purpose of admission of Atul, goodwill of the firm is to be valued on the basis of 2 year purchase of Average Super Profit of last four years. The normal rate of return in their business is 12% on capital employed.

Solution – I Ans – c) Working Notes:- Solution – II Ans – c) Explanation:- Atul’s share of goodwill = ₹ 35,100 60% brought in cash = 35,100 × 60% = ₹ 21060 premium for goodwill account is debited by…

Amit and Vidya are partners in a firm. They admit Sanjana as a partner with 1/4th share in the profits of the firm. Sanjana brings ₹ 2,00,000 as her share of capital. The value of the total assets of the firm is ₹ 5,40,000 and outside liabilities are valued at ₹ 1,00,000 on that date. Sanjana’s share of goodwill is

Ans – d) Working Notes:- Net worth of the firm (with goodwill) = New partner’s capital × reciprocal of his share ₹ 2,00,000 × 4 = ₹ 8,00,000 Net worth of the firm (without goodwill) = Total assets – Outside…

Assertion (A): Anahat and Parminder are partners sharing profits in the ratio of 2 : 1. They admit Rubayat as partner w.e.f. 1st January, 2021. On that date, Goodwill existed in the books at ₹ 1,00,000. Goodwill of ₹ 50,000 was written off by debiting capital accounts of Anahat and Parminder in the ratio of 2 : 1. While balance goodwill was carried forward in the Balance Sheet.

Ans – d) Explanation:- Existing goodwill is purchased goodwill in the past. at it belongs to only old partners. thus at the time of admission of a new partner. it is completely written off from the books by debiting old…

Assertion (A): Gurman and Ravi are equal partners. They admitted Param as a partner and their new profit-sharing ratio was 2 : 2 : 1. They revalued the assets and reassessed their liabilities. They did so because a new partner should not be at an advantage or disadvantage.

Ans – b) Explanation:- The change in assets and liabilities belongs to the before admission of Param, thus final change is distributed to the old partners in old ratio so that new partner is not advantage or disadvantage.

Assertion (A): Parul and Paresh are partners sharing profits equally. They admit Prema for 1/4th share in future profits. On the date of admission, Workmen Compensation Reserve existed in the books at ₹ 1,00,000. A claim of ₹ 1,50,000 was made by a worker and was to be accounted. The existing reserve of ₹ 1,00,000 will be distributed between Parul and Paresh and ₹ 1,50,000 being the claim amount will be transferred to the debit of Revaluation Account.

Ans – d) Explanation:- Workmen’s compensation claim is adjusted through the workmen compensation Reserve. any excess is transferred to the debit side of the Revaluation Account.